Vodafone appoints Margherita Della Valle as CEO

The wait is finally over. Despite all the speculation about potential candidates ranging from Olaf Swantee through to Vivek Badrinath, Vodafone confirmed on Thursday that it is sticking to what it knows and appointed Margherita Della Valle as Group CEO.

Della Valle has already effectively been in the top role for the past four months, serving as interim CEO after Nick Read stepped down at the end of 2022. She will also continue to act as chief financial officer until a replacement has been found.

Figure 1: Margherita Della Valle succeeds Nick Read as Vodafone Group CEO.
(Source: Vodafone)

Vodafone's new boss certainly faces a daunting task. Although such a role comes with many rewards, both financially and otherwise, it involves navigating the pan-European group through some fairly perilous waters ahead.

She will have to contend with fractious shareholders worrying about plummeting stock values, while maintaining a balance between the group and the needs of each Vodafone operating company throughout its European footprint, not to mention India.

'We know we can do better'

Of course, Della Valle knows better than most the challenges that Vodafone faces. In a statement following her appointment, she acknowledged that 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."

Jean-François van Boxmeer, chairman of Vodafone Group, said Della Valle had impressed him and the board "with her pace and decisiveness to begin the necessary transformation of Vodafone" and gave her his full support.

Kester Mann, director for consumer and connectivity at CCS Insight, wryly observed nonetheless that after such a protracted recruitment process, "it's hard not to conclude that the appointment of Margherita Della Valle wasn't the initial first choice for all parties after Nick Read's departure was announced."

However, Mann notes that she has strong credentials through a wealth of experience both internationally and within Vodafone, including her stint as interim boss.

"Appointing a close aide of Mr Read to the top job suggests little deviation in strategy for Vodafone," Mann added. "This may not go down so well with people pushing for a fresh approach to running the embattled company, but it does give Vodafone a safe pair of hands during a challenging time."

There is certainly already plenty on her to-do list: Middle Eastern operator e& is stake-building in the operator, talks on a merger with Three UK are ongoing and fresh discussions are underway in Italy with Iliad, according to reports.

Paolo Pescatore, tech, media and telco analyst at PP Foresight, agreed that it became apparent that Della Valle would get the role by default.

"While she has already implemented some changes, numerous challenges still remain," he said. "There needs to be a radical shift from the previous thinking and approach to avoid the status quo. In reality, this requires a huge cultural change in mindset and execution."

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— Anne Morris, contributing editor, special to Light Reading