Vodafone appoints Margherita Della Valle as CEO

Vodafone Group Plc has announced Margherita Della Valle, a 29-year veteran of the company, as its next Chief Executive Officer. The appointment comes as a surprise, as many speculated that the struggling company would choose an outsider for the first time, media reports noted.

Della Valle began her career as one of the first employees of Italian telecom startup Omnitel, which was acquired by Vodafone in 2001. After the takeover, she rose through the ranks, serving as Chief Financial Officer for Europe, Group Financial Controller, Deputy CFO, and CFO.

Dawn of a new leadership

During her tenure, Della Valle implemented cost-saving measures which saved billions of euros and oversaw the carve-out, listing, and sale of Vantage Towers, the company's mobile mast business. In January, she became interim CEO after Nick Read was ousted without a replacement lined up.

Reuters said her significant backers included institutional investors such as Emirates Investment Authority, which has a 14.6 percent stake. Reuters reported in December 2022 that Read, her immediate predecessor, had hoped to consolidate Europe's fragmented telecom markets but struggled to put intention into action.

According to a Moneycontrol report, investors' dissatisfaction was reflected in the company's share price falling by 45 percent during his four-year tenure.

Following his departure, some investors and analysts felt that the group needed an outsider to shake things up.

Berenberg analysts stated in January that investors would view Della Valle as a 'continuity' appointment.The company, however, said that it completed a thorough internal and external search before hiring the Della Valle, who has served as the CFO since 2018.

Since assuming the role of CEO on an interim basis in January this year, Della Valle has taken swift action to address the company's challenges. She has already cut hundreds of jobs at the company's London headquarters, as part of her cost-cutting drive.