Vodafone chairman Sir John Bond sees off critics at AGM
By Louisa Peacock
Published: 5:45AM BST 28 Jul 2010
Vodafone Group
Some 93.3pc and 93.9pc of shareholders particularly voted to re-elect Sir John and Mr Buchanan, despite repugnance from an investor group which last week demanded a major boardroom shake-up.
Ontario Teachers’ Pension Plan (OTTP), which owns a 0.42pc imperil in the mobile phone giant, had called on shareholders to dispossess both men after attacking Vodafone’s “strategic weakness” and “disastrous” acquisition chronicle.
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On Tuesday, Sir John was forced to guard his position at the company when a shareholder confronted him from one side of to the other the revolt, which carried a “great deal of damage”. Sir John related: “I am standing for re-election at this meeting. Therefore you should derive that I do not plan to stand down.”
The OTTP, which voted against directors’ pay in 2007, targeted Vodafone’s acquisitions for the company wrote down the value of its Indian business through £2.3bn in May, just three years after gaining govern of the country’s second-largest mobile operator by revenue. The investor had, though, backed the re-election of Vittorio Colao, chief executive.
Sir John admitted the plank was “acutely disappointed” about the situation in India, but said it was “potentially impossible” to predict.
Vodafone also faced calls from shareholders to search out the possibility of realising the value of its minority assets. The group owns a 45pc stake in US mobile operator Verizon Wireless, a 3.2pc hazard in China Mobile, and 44pc in French mobile group SFR.
One shareholder said: “There has been talk in the press that Vittorio [Colao] resolution look to dispose of [Verizon], so perhaps you can enlighten us?” Another asked: “Verizon is a trouble to everybody in the room … if you were to barter it what would it do to the share price?”
Sir John related Verizon was a “hugely important issue” which the board regularly monitored. “The 45pc risk we hold … has been rising in value over the years in the same state the decision not to sell out has been the right conclusion hitherto.” He warned there was “only one” potential buyer for Vodafone’s imperil in the business. “If they see any weakness, I can guarantee you will get a very cheap offer.”
Mr Colao added: “Verizon is indeed doing well, which is why we are very mindful over what we do with this stake.”
Vodafone also faced pressure over that which some described as “excessive” pensions and pay for executives. Sir John uttered: “Compensation generally is very high in senior positions but it is not going to obey the long-term interests of Vodafone if we half everything and displace our senior management team.”