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| Shock departure for Vodafone boss | Shock departure for Vodafone boss |
| (about 1 hour 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. | 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. | |
| That year, Vodafone made a loss of £14.9bn - a record for a UK firm - after it had to significantly reduce the value of its assets, including German telecoms firm Mannesmann, which it had bought in 2000. Recovery | That year, Vodafone made a loss of £14.9bn - a record for a UK firm - after it had to significantly reduce the value of its assets, including German telecoms firm Mannesmann, which it had bought in 2000. Recovery |
| See Vodafone's latest share price | See Vodafone's latest share price |
| Mr Sarin's back was "against the wall" in 2006, when about 15% of shareholders either abstained or voted against him continuing as chief executive, according to Richard Hunter, from stockbrokers Hargreaves Lansdown. | Mr Sarin's back was "against the wall" in 2006, when about 15% of shareholders either abstained or voted against him continuing as chief executive, according to Richard Hunter, from stockbrokers Hargreaves Lansdown. |
| However, he "has managed to turn that tanker around in recent years", Mr Hunter said. | However, he "has managed to turn that tanker around in recent years", Mr Hunter said. |
| "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. |
| The firm's shares have risen 38% since Mr Sarin was appointed in July 2003. | The firm's shares have risen 38% since Mr Sarin was appointed in July 2003. |
| The new strategy has mainly involved expanding operations in emerging markets. | The new strategy has mainly involved expanding operations in emerging markets. |
| The annual results showed its revenue in India had jumped by 50%, making up for "challenging" conditions in Europe, where pressure from competitors and regulators had pushed prices down by 15.8%. | The annual results showed its revenue in India had jumped by 50%, making up for "challenging" conditions in Europe, where pressure from competitors and regulators had pushed prices down by 15.8%. |
| Arun Sarin's CV 1975: Graduated as Bachelor of Science in Engineering, Indian Institute of Technology1978: Gained MBA, University of California, Berkeley1984: Joined Pacific Telesis Group1999: Joined Vodafone's board when it bought US mobile firm AirTouch Communications2000: Appointed chief executive of Vodafone AirTouch US & Asia Pacific regions2003: Appointed Vodafone chief executive2006: Survived shareholder revolt2008: Mr Sarin to retire at end of July | Arun Sarin's CV 1975: Graduated as Bachelor of Science in Engineering, Indian Institute of Technology1978: Gained MBA, University of California, Berkeley1984: Joined Pacific Telesis Group1999: Joined Vodafone's board when it bought US mobile firm AirTouch Communications2000: Appointed chief executive of Vodafone AirTouch US & Asia Pacific regions2003: Appointed Vodafone chief executive2006: Survived shareholder revolt2008: Mr Sarin to retire at end of July |
| "He started buying companies in developing markets, like India's fourth biggest mobile phone company Hutchison Essar. | "He started buying companies in developing markets, like India's fourth biggest mobile phone company Hutchison Essar. |
| These are markets where you'll get growth because penetration is low and you can sign up new subscribers," said Neil McCartney, analyst at McCartney Media. | These are markets where you'll get growth because penetration is low and you can sign up new subscribers," said Neil McCartney, analyst at McCartney Media. |
| "The other thing he did was move away from Vodafone's traditional stance of being a mobile only company by offering fixed line services," Mr McCartney added. | "The other thing he did was move away from Vodafone's traditional stance of being a mobile only company by offering fixed line services," Mr McCartney added. |
| Succession | Succession |
| Vodafone chairman Sir John Bond led to the tributes to his outgoing chief executive, saying Mr Sarin had led the company "with distinction". | 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 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. | "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. |
| Vittorio Colao was tipped to take over the top job at Vodafone from Sir Christopher Gent in 2003, but was beaten to the post by Arun Sarin. | Vittorio Colao was tipped to take over the top job at Vodafone from Sir Christopher Gent in 2003, but was beaten to the post by Arun Sarin. |
| Since his appointment as deputy chief executive in 2006, 46-year-old Mr Colao has run Vodafone's European operations. | Since his appointment as deputy chief executive in 2006, 46-year-old Mr Colao has run Vodafone's European operations. |
| During his career, he has worked for investment bank Morgan Stanley, consultants McKinsey & Co and the Milan-based RCS MediaGroup. | During his career, he has worked for investment bank Morgan Stanley, consultants McKinsey & Co and the Milan-based RCS MediaGroup. |
| Looking ahead, analysts say a move to new markets, such as entertainment, is something the new boss might well consider. | Looking ahead, analysts say a move to new markets, such as entertainment, is something the new boss might well consider. |
| For instance, France Telecom has launched a "triple-play" strategy combining television, internet and telephone services. | For instance, France Telecom has launched a "triple-play" strategy combining television, internet and telephone services. |
| "Growth is in the home broadband and TV markets and, unlike its European rivals like France Telecom and Telefonica, Vodafone is missing home TV," said John Delaney from consultancy IDC. | "Growth is in the home broadband and TV markets and, unlike its European rivals like France Telecom and Telefonica, Vodafone is missing home TV," said John Delaney from consultancy IDC. |
| Shares in the firm closed down 1.7% at 160.5p. |