As a result, the company has announced the appointment of Marc Murtra, the chairman of defence company Indra, as its new CEO.
Replacing Jose Maria Alvarez-Pallete, the move was made over the weekend after the telecoms giant decide to terminate Alvarez-Pallete’s contract and offer Murtra the role, which he accepted.
In a filing to the stock market regulator, the company said the decision still needs to be approved by shareholders.
Subscribe today for free
SEPI, the state-owned investment fund, proposed replacing Alvarez-Pallete, who has led Telefonica since 2016, with Murtra, according to sources.
This comes as Alvarez-Pallete’s current term was set to be renewed this year, typically during the annual general shareholders meeting in April or May.
In a LinkedIn post, Alvarez-Pallet, said: “Telefónica has been much more than a workplace for me. It has been my home and my school. Here I have met the brightest and best prepared professionals. Here I have grown up with all of you.
“Together we have been able to transform challenges into opportunities, to turn the impossible into possible, to make the bad good, and the good, something, if possible, even better. You have been the real protagonists.”
He added: “Thank you for sharing your enthusiasm and generosity with me. Thank you for every moment you have given me and for every step we have taken together. Most of all, thank you for believing in me.
“I would like to express my gratitude to the board of directors of Telefónica, and the executive committee, for their trust during all these years. It has been a great honour.
“With a heart full of gratitude and feeling deeply proud of all of you, I ask you to make the same commitment, loyalty and passion that you have shown me available to the new president of Telefónica Marc Murtra.”
Under Murtra’s leadership, Indra, in which the Spanish government holds a 28% stake, has focused on its defence and aerospace sectors to capitalise on the increased military spending by European countries amid rising global tensions.
In May last year, the Spanish government, through SEPI, acquired a 10% stake worth about € 2.3 billion euros ($2.36 billion) in Telefonica to balance a similar stake acquired by Saudi Arabia’s STC in late 2023.
As a result, this move gave the government a seat on Telefonica’s board.
RELATED STORIES
