José María Álvarez-Pallete, Telefónica’s long-serving CEO and Executive Chair, has stepped down after nearly nine years at the helm, prompted by the company’s changing shareholding structure, including a request from the state-owned fund, SEPI.
Marc Murtra, former Executive Chair of defense company, Indra Group, has been appointed to succeed him, although the appointment still needs to be ratified by Telefónica’s shareholders.
Also Read: Telefónica Reports 29% Earnings Increase, Plans Fiber Expansion with Vodafone Spain
This leadership change follows significant shifts in the company’s ownership, including a 10% stake acquisition by Saudi Arabia’s stc Group in late 2023 and an increase in the Spanish government’s stake through SEPI in 2024. The move comes as Telefónica faces increasing pressure from fierce competition and the need to invest heavily in infrastructure for next-generation mobile technologies like 5G.
Having joined Telefónica in 1999, Álvarez-Pallete became CEO in April, 2016, guiding the company through significant transformation in the telecom industry. In addition to his Telefónica role, Álvarez-Pallete has been chair of the GSMA since 2022. The GSMA acknowledged his departure and praised his contributions, particularly in driving the Open Gateway initiative and other key industry efforts. The association stated that it is assessing the implications of his exit and preparing to appoint a new board chair.
Past Coverage: José María Álvarez-Pallete Re-Elected as GSMA Chair
In a translated social media post, Álvarez-Pallete reflected on his tenure, calling it “a great honor” and encouraging colleagues to extend the same “commitment, loyalty, and passion” to Marc Murtra’s leadership. Murtra, who has led Indra Group, a company partly owned by the Spanish government, brings significant experience from the defense and technology sectors.