Outgoing Vodafone chairman defends chief executive
The outgoing chairman of mobile phone giant Vodafone robustly defended its chief executive today after shareholders expressed concerns over his leadership.
Arun Sarin has come under fire for poor judgement in the face of slowing revenues growth in the firm which in May announced losses of £14.9bn (€21bn) after a £28bn (€40bn) write down on the value of its assets.
Asked by shareholders when Mr Sarin would quit, Lord MacLaurin said: “There is no question of Arun Sarin stepping down from the company. He’s not contemplating his resignation.”
Lord MacLaurin denied the board was dysfunctional as suggested by shareholders meeting at the AGM in central London, following recent reports of boardroom spats.
“This board is united,” he repeated several times. “The new team under Arun will continue to deliver. The board is totally behind Arun going forward.”
Since Mr Sarin, 51, took over the helm three-years-ago, the Footsie 100 index has risen 40% but Vodafone shares have dropped 5%. Many shareholders who have lost money by investing in the group were angry at the direction the company is going in.
“Why is the share price so low,” one asked.
Another said: “Shareholders invest for a continuing return which I suggest that Vodafone – despite its potential – is not delivering.”
One shareholder said he had lost thousands in the company and some questioned whether a £9bn (€13.1bn) return of cash to shareholders was not to their benefit but to that of the management team.
While not commenting on his own future Mr Sarin pointed out the telecoms industry was changing quickly and Vodafone had changed its strategy.
As Western European markets reached saturation levels, Vodafone had to look at new ways to take minutes away from fixed line products, he said.
“We are a successful company today and we intend to remain a successful company in the future,” he said.
Lord MacLaurin steps down as chair today to be replaced by former HSBC chief John Bond and several shareholders paid tribute to Lord MacLaurin’s leadership.
