London Daily

Focus on the big picture.
Sunday, Sep 13, 2026

Vodafone CEO to leave after frustrating four years for shareholders

Vodafone CEO to leave after frustrating four years for shareholders

Nick Read will step down as Vodafone (VOD.L) chief executive by the end of the year, ending a four-year tenure during which the British telecom group's share price has nearly halved.

Once one of the biggest mobile operators in the world, Vodafone has been selling assets to focus on Europe and Africa, but the deals have not arrested its stock's decline.

Vodafone's board was unhappy with Read's lack of progress in delivering growth and has tasked his interim replacement, finance director Margherita Della Valle, with accelerating "the execution of the company's strategy to improve operational performance and deliver shareholder value".

The company warned on profit last month as energy costs soared, an already poor performance in its biggest market Germany worsened, and intense competition in Spain and Italy showed no sign of easing.

Read had pinned his hopes on the consolidation of Europe's fragmented telecoms markets but he struggled to turn intention into action. With the economic outlook darkening, the window for deals may be closing, analysts said.

Vodafone was outmanoeuvred in Spain when Orange and MasMovil agreed to merge in July, while there has been no answer to its Italian problem since it rejected an offer for its business there from French telecoms billionaire Xavier Niel's Iliad and Apax Partners in February.

Read did extract value from Vodafone's mobile towers by spinning them out and selling a chunk of the listed company to private equity firms Global Infrastructure Partners and KKR, and recently agreed to sell its Hungarian business.

Vodafone is also in talks to merge with Hutchison's Three in Britain, but it will be a race to get the deal over the line before Read leaves.

The towers deal and the UK talks were not enough to placate shareholders, however, who are focused on Vodafone's ability to navigate tougher economic conditions.

Vodafone's shares, which have fallen 45% since Read took over in October 2018, are trading just off two-decade lows.

"I agreed with the board that now is the right moment to hand over to a new leader who can build on Vodafone's strengths and capture the significant opportunities ahead," Read said.

Vodafone shares underperform


HEADWINDS

Vodafone's shares gave up early gains to trade 0.2% lower in afternoon deals.

"The next question is what solutions are really available to the next CEO?" Jefferies analysts wrote.

Vodafone faces "intractable headwinds", they said, adding that dividend policy should be treated as under review.

Niel, who bought a 2.5% stake in Vodafone in September, said in an emailed statement: "A change of CEO only makes sense if the new CEO has a clear roadmap from the board of directors."

He said the roadmap should include streamlining Vodafone, selling infrastructure to reduce debt, driving cash generation and improving margins and focusing on broadband in Germany.

He said his vehicle, Atlas Investissement, was ready to help the board design the best possible roadmap.

Read, 58, cut Vodafone's dividend for the first time in 2019, citing a worsening outlook, and need to cut debt and invest in networks.

The shares are supported by a dividend yield of more than 8%, but its forecast of around a 300 million euro fall in free cash flow this year worried investors.

Read, however, said last month the dividend was "intrinsically" linked to Vodafone's mid-term growth ambition.

The board has begun the search for new CEO, the company said.

Della Valle, who will receive the same base salary as Read, would be considered if she put her name forward, analysts said.

Read, who has spent more than 20 years at Vodafone and who will remain as an adviser until March, will receive his base pay of just over a million pounds until end-March 2023, and an amount in lieu of his salary for the remainder of his 12-month notice period, Vodafone said.

He will also receive up to 7,000 pounds for legal fees related to his departure and up to 50,000 pounds of "outplacement support", it added.

Newsletter

Related Articles

0:00
0:00
Close
Bayeux Tapestry Draws Large Crowds at British Museum
Cuts to International Aid Raise Concerns Over Fragile Overseas Health Systems
UK Airlines and Logistics Operators Adjust Capacity as Fuel Costs Rise
UK Mortgage Arrears Edge Lower in Second Quarter
UK Government Advances New Devolution Offers for English Councils
UK Parliament Begins Debate on NHS Governance and Single Patient Record Reforms
Andy Burnham Launches Number 10 North Devolution Initiative
UK Parliament Rejects Assisted Dying Bill for Terminally Ill Adults
UK Bans Goods From Israeli Settlements in the Occupied West Bank
UK Economy Grows 0.4% in July as Technology Services Strengthen
Metropolitan Police Continue Investigation Into Reform UK Political Financing
Chinese Crypto Entrepreneur Leon Li Identified as Seller of £190 Million London Mansion
Trades Union Congress Proposes Social Energy Tariff Funded by Higher Bank Surcharge
British Chambers of Commerce Calls for State Pension Triple Lock to Be Scrapped
Anthropic Says Claude Helped Disrupt Biological Weapons and Cyber Espionage Threats
UK Imposes Sanctions Over Israeli Settlements and West Bank Violence
UK Reimposes Sectoral Sanctions on Iran’s Aviation, Shipping and Energy Networks
UK Economy Grows 0.4% in July as AI and Programming Services Lift Activity
UK House of Commons Rejects Assisted Dying Bill by 286 Votes to 270
UK Reviews Nationwide Emergency Alert Tests After Systems Meet Reliability Targets
UK Seeks Faster Rail Links Across Northern Industrial Corridors
British Business Bank Allocates £150 Million for High-Growth Companies in Northern England
BBC Warns Staff Strikes Are Possible Amid Pay Dispute and £500 Million Savings Drive
UK Backs Short Extension of UN Sudan Sanctions Regime
Prime Minister Andy Burnham Defends Early Prison Release Reforms and Growth Strategy
Reform UK Faces Scrutiny Over Alleged Effort to Circumvent Foreign Donation Rules
UK Analysts Warn Tax Rises or Spending Cuts May Be Needed to Preserve Fiscal Headroom
Jaguar Land Rover Plans Up to 4,000 Job Cuts in £1.7 Billion Cost-Saving Drive
UK Chancellor Warns of Difficult October Budget as Borrowing Costs Rise
UK Declares Israeli Occupation of West Bank Unlawful and Expands Sanctions
UK House of Commons Rejects Assisted Dying Bill for England and Wales
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
×