Vodafone's Sarin under serious attack

THE BOSS OF VODAFONE, Arun Sarin, has come under serious attack from investors who want his sculp. You may recall he perpetuated the biggest ever loss in UK history - £14 billion.

What really incensed shareholders like the Morley Fund Management Group, is that the company's remuneration committee is proposing to reduce the qualification for bonus shares to 5 to 10 per cent earnings per share growth from 8-16 per cent.

The Sunday Times names three directors who may face the chop at tomorrow's (Tuesday's) shareholder meeting in London. The main culprit is Former Marks & Spencer boss Luc Vandevelde, who heads Vodafone's remuneration committee.

The INQ notes that recognised Vodafone troubleshooter, Bill Morrow, isn't on the list.

The Scotsman also urges Vodafone to sell of its interests in Verizon Wireless to pay off its debts. The INQ has long found it incredible that Vodafone continues its relationship with a cdmaOne network in the USA when it should be offering a GSM based service.

Perhaps, if it sells its Verizon stake, Vodafone could consider becoming a US MVNO. It buying power with GSM handsets could then be brought to bear. And no sooner had the INQ painted Vodafone's chief troubleshooter, Bill Morrow, as the man to save current CEO, Arun Sarin's neck, than the company announces his departure.

It's the same old excuse. Morrow says he's going back to the USA to spend more time with his family and will leave Vodafone at the end of July.

Arun Sarin - in a classic understatement - said, "Whilst the timing is regrettable, I respect the decision he has made to return to the US to be with his family."

Bill Morrow will be succeeded, on an interim basis, by Fritz Joussen currently CEO with Vodafone's business in Germany.

That puts Joussen in charge of delivering revenue generation and cost reduction strategy for the European region.

The phrase rats fleeing a sinking ship comes to mind. µ

See Also
Vodafone's Sarin under serious attack
London Stock Exchange
the Scotsman
Vodafone makes largest loss in UK history