Vodafone Chairman Bond signs off with parting shots at detractors
24 June 2011
|
Sir John Bond, the outgoing Chairman of Vodafone, signed off his final Group Annual Report with an uncontroversial Chairman’s Statement, albeit with some comments evidently directed towards shareholders that have sought to pin him with blame for the valuation difficulties Vodafone experienced during most of his leadership.
Sir John — whose five-year Chairmanship is set to end at the Group’s Annual General Meeting (AGM) in July 2011, to be replaced by former Philips‘ President Gerard Kleisterlee (Vodafonewatch, 2010.09 and 2011.02-03) — sought to assert that Vodafone’s recent paring down of non-controlled interests has been a strategy pursued throughout his entire reign, perhaps betraying some chagrin at the media’s crediting of the move to the structural reorganisation conducted by Chief Executive Vittorio Colao in 2010 (Vodafonewatch, 2010.09).
Both Sir John and Deputy Chairman John Buchanan took considerable flak at Vodafone’s stormy July 2010 AGM over retention of these assets, which have historically depressed the value of Group shares (Vodafonewatch, 2010.07-08 and passim). However, the Chairman attempted to delink their subsequent centralisation, and Vodafone’s resultant exits from China Mobile, SFR, and SoftBank Mobile, from investor objections at the meeting — describing the sales as part of a longer running “ongoing process, starting with the disposals of our interests in Belgacom and Swisscom five years ago, but inevitably pausing during the financial crisis when asset prices were depressed”.
VZW — “told you so”
Sir John also claimed that Vodafone’s leadership has been “strongly vindicated” in opting not to withdraw from US associate Verizon Wireless (VZW), despite considerable media and shareholder pressure — a long-term play appearing set to pay off with Group partner Verizon Communications looking likely to end a several year hiatus in dividends from VZW in 2012 (Vodafonewatch, passim).
“ We have continually assessed the risks and opportunities of having capital deployed in some of our non-controlled interests. This is particularly true of Verizon Wireless, from which we have not received a dividend (other than tax-related dividend receipts) for six years. It would arguably have been easier to sell our stake along the way, but our decision to remain invested has been strongly vindicated by its exceptional operating performance and strong cash generation, which have led to a significant increase in the value of the asset. ”
– Sir John Bond Chairman’s Statement .
Push for better female representation to pre-empt more changes
Another interesting take-away from the Annual Report is that refreshment of Vodafone’s board is unlikely to end with Bond’s departure, with several further departures and arrivals appearing to have been mandated by Group policies in the three-four years to end-FY14-15.
The report declares it is now Vodafone’s “aspiration” to have a minimum of 25% female representation on the board “by 2015″, in line with recommendations set out in the UK government’s Davies Review on Women on Boards, published in February 2011. With only two out of 15 members female — Anne Lauvergeon and most recent appointee Renee James (Vodafonewatch, 2010.11) — this would require at least two-three new appointments, depending on whether they replace or add to existing directors.
Vodafone has also said non-executive directors are “generally not expected” to serve more than nine years on the board, which implies that, in the same timeframe, several members could step down. Buchanan has now served more than eight years on the board; Lauvergeon in excess of five; Luc Vandevelde more than seven; and Anthony Watson and Philip Yea in excess of five.
As well as enabling greater diversity, and helping the Group update skills to reflect changes in the industry (evident with the appointment of Intel‘s James), new appointments will no doubt create further opportunities for Colao to cement his position and reduce risk of the high-profile ructions that haunted his predecessors.
[Further reference: Annual Report for the year-ended 31 March 2011 -- Vodafone (PDF).]
Vodafone and its rich web of OpCos — tracked and analysed worldwide.
A unique monthly report for the industry.
- Vodafonewatch is the only independent monitor of everything and anything to do with Vodafone Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
- Covering not just the world's number-one mobile group and its many operating companies, but also its wider interests, including Verizon Wireless in the US, Vodacom in Africa, China Mobile, SFR in France, Polkomtel in Poland, Safaricom in Kenya, Partner Markets initiatives, and much more.
- Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
- A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
- A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
- Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from UKP GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
- Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
- Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.
Comments
Got something to say?
