Subject:  Mega-deal Gent to step down at Vodafone |
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Date Posted: 18:12:01 12/18/02 Wed
Mega-deal Gent to step down at Vodafone
MARTIN FLANAGAN CITY EDITOR
VODAFONE Group chief executive Sir Christopher Gent, one of the biggest dealmakers British industry has ever known, surprised the market yesterday by announcing that he would resign from the telecoms giant next July.
The 54-year-old boss, who also excited controversy with his mega-deal inflated bonuses, is to be replaced by Arun Sarin, the Asian chief executive of San Franciso-based Accel-KKR Telecom. He is also currently a Vodafone non-executive director. Lord MacLaurin, Vodafone’s chairman, said: "This appointment is part of a carefully-orchestrated succession plan.
"Chris has contributed a huge amount of time and energy to the company and it is a testament to his achievements that Vodafone is now positioned as the global leader in mobile telecommunications."
And MacLaurin told BBC radio : "Chris Gent will go down in history as one of the greatest chief executives this country has ever seen."
Gent, who will not receive a pay-off, had previously said he would retire in the latter half of 2003. Vodafone’s shares closed off 2.75p, or 2.4 per cent, at 110.25p.
The hallmark of Gent’s career was a string of buccaneering share-financed deals in the binge-buying late 1990s that made Vodafone the world’s biggest mobile phone company.
These climaxed with the 1999 takeover of AirTouch in the US and the £100 billion takeover of German telecoms giant Mannesmann.
Gent was managing director of the UK operating company of Vodafone from its launch in 1985 and became chief executive on 1 January, 1997. MacLaurin pointed out yesterday that at that time Vodafone was worth £7.5 billion on the stock market, with an equivalent share price of 49.3p, while now it is valued at £75 billion.
Some City analysts said Gent, known as a dealmaker rather than telecoms operations manager like Sarin, may have decided that the days of mega telecoms acquisitions were past. He was recently trumped by arch rival Vivendi Universal 13.1 billion (£8.4 billion) bid to buy out French telecoms major Cegetel.
Despite his strong track record, there was City outrage at Vodafone’s remuneration policy, which included a recent £10 million salary and bonuses package over three years, as well as a £10 million cash bonus for Gent after its takeover of Mannesmann.
There was unfortunate timing over the latest package as it coincided with Vodafone making a thumping £13.5 billion loss last year.
The company said yesterday that Sarin, who will relocate to London next year, would be paid a base salary of £1.1 million "and incentives which have the same structure and quantum as those currently applying to Sir Christopher".
Sarin was chief operating officer of AirTouch until Vodafone bought it. He then ran Vodafone’s businesses in the Americas and Asia. He left Vodafone in April 2000. Accel-KKR Telecom, is a communications business owned by venture capital firm Accel Partners and Kohlberg Kravis Roberts.
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