Former Vodafone boss awarded £4m compensation despite being fired for poor performance

Mr. Reid served four years as the CEO of Vodafone. Credit: Vodafone/Reuters

Former Vodafone CEO Nick Reed took home more than £4m in salary and bonuses last year despite being fired due to the company's share price plummeting.

Mr Reid, who left Vodafone in December after four years as chief executive, received a payment of £3.9 million in the years through March, including an annual bonus of £900,000.

He also received £270,000 in the first three months of 2023 for his work advising the board of directors and over £730,000 for the remainder of the 12-month notice period.

In its annual report released today, Vodafone also said that will provide £7,000 for legal fees related to his departure, as well as £50,000 to help him find a new job.

This week, Mr Reid was appointed chairman of Exa Infrastructure, the London-based company that owns the fiber optic networks and submarine cables connecting Europe to North America.

Payday arrives despite former Vodafone boss's turbulent tenure , who was fired due to pressure from active investors over the company's weak performance and a nearly 50 percent drop in its share price.

1506 Vodafone's shares plummeted

Mr Reid announced a €1bn (£860m) plan to cut costs, cut jobs and raise prices in November, but was fired just weeks later.

Vodafone launched a protracted five-month search for his successor before eventually elevating CFO Margherita Della Valle to the top position.

Since Ms. Della Valle took over the leadership, Ms. Della Valle has unveiled plans to cut 11,000 jobs, she admitted. the ailing telecommunications giant 'needs to change'.

Earlier this month, it also announced a £15bn merger with rival network Three, after more than a year of price wrangling and delays caused by Mr Reed's departure.

The new CEO is considering making other deals to shrink his sprawling business. The company has reportedly hired Morgan Stanley to look at options for its Spanish arm.

Last year, Ms Della Valle received £3.7m, including three months as interim CEO until the end of March . Her new salary has been set at £1.25m, plus bonuses and benefits.

She also remains CFO while Vodafone looks to replace her.

Vodafone's earnings remain at the level of 45.7 billion euros. last year and profits fell 1.3%, which the company attributed to high energy costs and continued poor productivity in Germany.