Vodafone hires interim boss to top job
Margherita Della Valle has been interim chief executive since her predecessor Nick Read left at the end of last year.
Mobile phone giant Vodafone has appointed interim boss Margherita Della Valle as permanent chief executive, ending nearly five months of uncertainty over the top role.
The group said Ms Della Valle – the firm’s former chief financial officer – had been hired after a “rigorous internal and external search”.
She has held the role on an interim basis after Vodafone ousted her predecessor Nick Read in December after four years as chief executive amid concerns over the company’s performance.
She will take on the job alongside her previous role as finance chief while the firm hunts for her replacement.
To realise our potential Vodafone needs to change. We know we can do better
Jean-Francois van Boxmeer, Vodafone chairman, said: “Margherita has a strong track record during her long career at Vodafone in marketing, operational, commercial and financial positions.
“Over the last few months as interim group chief executive, the board and I have been impressed with her pace and decisiveness to begin the necessary transformation of Vodafone.
“Margherita has the full support of myself and the board for her plans for Vodafone to provide better customer experience, become a simpler business and accelerate growth.”
She will be paid a £1.25 million annual salary, plus pensions and car allowance, as well as the potential for a £2.5 million a year annual bonus and up to a possible £6.25 million in long-term share awards.
Ms Della Valle said: “To realise our potential Vodafone needs to change.
“We know we can do better. My focus will be to improve the service for our customers, simplify our business and grow.”
Vodafone recently revealed it is rolling out more price hikes and ploughing ahead with a cost-cutting drive as quarterly revenue growth slowed.
It reported a 1.8% rise in service revenues in its third quarter, down from growth of 2.5% in the previous three months as more difficult trading in Germany, Italy and Spain offset a robust performance in the UK.
The firm increased tariffs in the face of soaring costs, with eight markets now operating inflation-linked pricing models.
It said it also has plans under way to drive around half of the one billion euro (£883 million) cost-saving target it unveiled late last year, which it said at the time might lead to job losses.