Surprisingly and, unusually, this weekend, there has been a change in the presidency of Telefónica at the government level. The Board of Directors of the telecommunications operator, in an extraordinary manner, has agreed to the change with the departure of the company’s current number one, José Mª Álvarez Pallete and the arrival of the until now president of Indra since 2021, Marc Murtra, who will replace him in the position.
Change in the presidency of Telefónica
In the relevant fact sent to the CNMV on Saturday afternoon, the company highlights that «in view of the new shareholding structure of the Company and that some of its relevant shareholders have expressed the convenience of undertaking a new stage in the presidency executive, the Board of Directors of Telefónica, meeting today to assess the situation has agreed to the orderly renewal of the presidency of the Company, to adapt it to its new shareholding structure«, with the departure of José María Álvarez-Pallete as Executive Chairman of the Board of Directors of Telefónica, and «request him, in accordance with the provisions of article 12.2.a) of the Regulations of the Board of Directors, to resign from his position as Director «.
Furthermore, the statement states «in order to guarantee an adequate replacement in the executive presidency of the Company, approve the appointment by co-option of Mr. Marc Thomas Murtra Millar, as Executive Director of the Company, also appointing him Executive President of the Board of Directors and delegating all its delegable powers to it, for its exercise on a joint and several basis. Mr. Murtra has accepted his appointment as Executive President of Telefónica on this same date.»
In this way the change becomes effective. is determined by the entry of the Government, through the SEPI in Telefónica, with 10% of its capitalwho is the one who has urged this change.
From social network X, the already outgoing president of the operator wanted to say goodbye with these words «It has been a privilege to be part of the great Telefónica family. It has been my home and my school. Together we have turned the impossible into possible. Thank you for every step we have taken together and thank you for believing in me. Once a phone, always a phonenico.
According to some information, the until now president, José Mª Álvarez Pallete would receive around 23 million euros as compensation, while it would have an additional pension plan of the order of 12 additional million more.
Shareholder movements that have led to change
These movements of change at the top of the operator have been brewing for a long time. The replacement of Álvarez-Pallete occurs at a time when Telefónica has experienced the entry of new actors on its board of directors.
In September 2023, The Saudi operator STC acquired almost 10% of Telefónica shares in an operation valued at 2.1 billion euros, which caused changes in the company’s shareholding structure.
At the end of May, SEPI reached that percentage of Telefónica’s share capital after an investment of approximately 2,285 million eurosmotivated by the operation of the Saudi STC, at first with little sign of success, but later, it did have the approval of the Government. STC is now expected to apply for a seat on the operator’s board.
Álvarez-Pallete has held the position of CEO of Telefónica since April 2016, succeeding César Alierta. In addition, since 2022, he has also been president of the GSMA, the global association that brings together the main telecommunications groups globally.
Stock market balance of Álvarez Pallete at the head of Telefónica
Upon his arrival at the outgoing president’s company, the shares of the telecommunications operator They marked a price of 9.13 euros per sharewhile at the close of Friday their shares reached 3,955 euros per share.
This represents a drop of 56.7% since the arrival of José María Álvarez-Pallete to the presidency. and more than 50% loss in terms of the company’s capitalization, which now exceeds 22.5 billion euros.
At the end of December, and according to BME data, the company It is the seventh in weighting within the Ibex 35 with just a weight of 3.77% in the Spanish selective.
Previous movements on the board of directors
As SEPI consolidated its participation in Telefónica, the company’s board of directors unanimously accepted the resignation of Carmen García de Andrés as director and appointed Carlos Ocaña Orbis in her place, representing SEPI in said body.
From the Government, The possibility is contemplated that SEPI increases its participation in Telefónica to be able to nominate a second director. The entry of STC into the shareholding has also led CriteriaCaixa, the holding company of the la Caixa Banking Foundation, to reach a 9.99% stake in Telefónica’s share capital at the end of June.
Maintenance of Spanishness in the council
The movements made by SEPI and CriteriaCaixa are interpreted as measures to preserve Spanish representation on the board of directors of Telefónica. These changes come in addition to the death of Javier Echenique, vice president of Telefónica, whose seat on the board has not yet been occupied.
Profile of Marc Murtra and his possible arrival at Telefónica
As for Marc Murtra, who is emerging as the main candidate to succeed Álvarez-Palletewas appointed president of Indra in 2021 at the proposal of the Government, replacing Fernando Abril-Martorell.
It is relevant to mention that The Government, through SEPI, owns 28% of Indra, company that projects itself as a national benchmark in the defense sector in Spain.
He is an industrial engineer from the Higher Technical School of Industrial Engineers of Barcelona (ETSEIB) of the Polytechnic University of Catalonia. He also has a Master of Business Administration (MBA) from the Leonard School of Business at New York University.
The until now executive president of the Board of Directors of Indra He is an independent director at Ebro Foods, SAmember of its Executive Committee and president of the Audit and Control Committee, as well as Industry Director of Turbo Propulsores, SA
He is also patron of the Banking Foundation Caixa d’Estalvis i Pensions de Barcelona «la Caixa».