The State Society of Industrial Participations (SEPI), a public body linked to the Ministry of Finance and through which the Government owns 10% of Telefónica, has launched the replacement of the company’s presidency.
It is expected that Jose Maria Alvarez-Pallete is replaced by Marc Murtra, current president of Indra at the moment, as El Confidencial has reported.
Change in the presidency of Telefónica
In an urgent extraordinary council that will be held soon, it is expected that the replacement will be approved in the presidency of Telefónica. Sources familiar with the situation have indicated that «today is the key day» for this change.
Álvarez-Pallete has held the position of CEO of Telefónica since April 2016succeeding César Alierta. In addition, since 2022, he has also been president of the GSMA, the global association that brings together the main global telecommunications groups.
Context of the possible transition
The possible 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, lSEPI reached 10% of Telefónica’s share capital after an investment of approximately 2,285 million eurosmotivated by the operation of STC. STC is expected to apply for a seat on the operator’s board.
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.
The Government is contemplating the possibility of SEPI increasing its participation in Telefónica to be able to nominate a second advisor. 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 to Marc Murtra, who is emerging as the main candidate to succeed Álvarez-Pallete, He was 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, a company that is projected as a national benchmark in the defense sector in Spain. Murtra’s eventual appointment at Telefónica coincides with a period of changes at Indra, which this year must renew the majority of its board of directors and faces various challenges, such as the possible sale of its main subsidiary, Minsait, and the evaluation of the acquisition of Hispasat.