Vodafone Growth May Help CEO

The RED HERRING reports that "on the eve of a possible unseating of its CEO, Vodafone (VOD), the world’s largest mobile phone company, outperformed expectations as it added 4.5 million subscribers."

However, according to the article, "institutional investors with control of about 10 percent of the company plan to vote against the re-appointment of company CEO Arun Sarin and a number of directors."

John Delaney at Ovum said, "The numbers look good enough to let Sarin fend off the attacks for a little longer yet, but there is that nagging question of the long term."

Regarding the company's plans to improve growth, Delaney said, “Three months on, we’re still short on specifics regarding how those goals are to be achieved. Statements of good intent will not be enough by themselves for Sarin to keep the shareholders at bay for much longer. Clearly the markets have yet to be convinced that Vodafone’s board has a plausible plan to get the company’s top line into sustained double-digit growth over the long term."