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Shock departure for Vodafone boss | Shock departure for Vodafone boss |
(10 minutes later) | |
Vodafone chief executive Arun Sarin is stepping down from his post as the head of one of Britain's biggest companies after five years, the company has said. | Vodafone chief executive Arun Sarin is stepping down from his post as the head of one of Britain's biggest companies after five years, the company has said. |
In a surprise move, he will retire at the end of July and be succeeded by his deputy Vittorio Colao. | |
The news came as Vodafone unveiled annual pre-tax profits up 2% to £8.9bn. | |
Mr Sarin had built a good reputation in the City after a difficult period in 2006 when he faced a shareholder revolt and his performance was criticised. | |
Recovery | |
Under Mr Sarin, Vodafone expanded in emerging markets such as India, Turkey and Romania. | |
With mobile phone take-up in Europe near saturation point, by expanding in developing countries, the firm has been able to sign up large numbers of new users. | |
"I feel that I have accomplished what I set out to achieve, particularly in developing and implementing a new strategy," said Mr Sarin in a statement. | "I feel that I have accomplished what I set out to achieve, particularly in developing and implementing a new strategy," said Mr Sarin in a statement. |
Richard Hunter, from stockbrokers Hargreaves Lansdown, said Mr Sarin's back had been "against the wall" in 2006, when about 15% of shareholders either abstained or voted against him continuing as chief executive. | |
However, he "has managed to turn that tanker around in recent years", Mr Hunter said. | |
Succession | |
Vodafone chairman Sir John Bond led to the tributes to his outgoing chief executive, saying Mr Sarin had led the company "with distinction". | |
The news that he will be succeeded by his deputy Vittorio Colao will be welcomed by the City, according to Mr Hunter. | |
"The fact that his number two should be able to slip into his shoes will go down well in terms of succession planning," he said. | |
"We have seen problems with succession planning even at other FTSE 100 companies." | |
Unveiling its results, Vodafone said businesses in emerging markets were performing well, especially in India where revenue had jumped by 50%. | |
But conditions in Europe were "challenging", the firm said. Pressure from competitors and regulators had pushed prices down by 15.8%. |