Mobile phone giant Vodafone's chief executive Nick Read is stepping down at the end of the year, after a four-year tenure marked by a steep fall in the company's share price and a recent plan to slash costs, the British group said Monday.
Read will leave his role at the end of December following more than 20 years at the group but will remain an adviser to Vodafone's board until March 31, a statement said.
The group said chief financial officer Margherita Della Valle will take on the role on an interim basis, alongside her current duties, while it hunts for a new permanent boss.
His surprise resignation comes after Vodafone recently announced flat earnings for its first half and follows a near to 20% drop in its share price this year.
"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 in the statement.
He departs with Vodafone in talks over merging its U.K. operations with rival Three U.K., owned by Hong Kong-based CK Hutchison.
Vodafone believes a combination would accelerate the rollout of 5G telecoms technology in the U.K., which has been partly hampered by Britain banning Chinese giant Huawei from involvement in the technology offering faster downloads than 4G.
Shares in Vodafone rose 2% after the announcement, with one analyst saying investors will be hoping that a change at the top will reinvigorate its share price.
Vodafone Chairperson Jean-Francois van Boxmeer said: "I would like to thank Nick for his commitment and significant contribution to Vodafone,'' adding that, ''during his four years as CEO, he led Vodafone through the pandemic, ensuring that our customers remained connected with their families and businesses."
The group said Read will receive salary and benefits until March 31, after which he will receive an amount instead of his pay for the remainder of his 12-month notice period.
Leading technology communications company in Europe and Africa also said it will pay up to 7,000 pounds ($8,600) towards legal fees in connection with CEO's departure and stated he is entitled to "outplacement support" worth up to 50,000 pounds.