His replacement, Marc Murtra, has links with the public sector and government – last year the state acquired a 10% stake in the operator group
Telefonica’s long-standing Chair and Group CEO, Jose Maria Alvarez-Pallete (pictured) was asked to resign as at a board meeting on Sunday and complied. He will be replaced by Indra’s Marc Murtra as Executive Chair of the company, subject to shareholders’ approval. Already it seems some unions are expressing their concern at what is seen in some quarters as a boardroom coup by the state.
The press release says, the board meeting adopted a resolution for “termination of the contract signed with Mr. José María Álvarez-Pallete as Executive Chairman of Telefónica’s Board of Directors, and to request him, in accordance with the provisions of Article 12.2.a) of the Regulations of the Board of Directors, the resignation from his position as Director”.
Uneasy state
Apparently the state, which owns 10%, or thereabouts, of the operator was keen to replace Alvarez-Pallete as chair. He has served as Chair and Group CEO since 2016, meaning a great deal of executive power was concentrated in one individual’s hands. It seems that Alvarez-Pallete was only informed the day before about the board’s desire to terminate his contract.
The state’s holding was bought in response to Saudi Arabia’s stc acquiring a stake of approximately 10% in 2023. Operator stc is owned by the Saudi sovereign fund. Although a substantial shareholder, it has no formal representation on the board. The press statement said the change was appropriate, “in view of the company’s new shareholding structure” and the desire of some shareholders for a “new stage” in leadership.
Álvarez-Pallete was elected for another two-year stint as chair of the GSMA last October. Much of the day-to-day running of Telefonica has long been delegated to COO Ángel Vilá and CFO Laura Abasolo who assumed those roles in 2017.
The Spanish information technology company Indra said on Sunday that Angel Escribano Ruiz will replace Murtra as company director and chairman of the board.
More about Murtra
Murtra is an Industrial Engineer from the Escola Tècnica Superior d’Enginyers Industrials de Barcelona (ETSEIB), of the Universitat Politècnica de Catalunya. He also holds a Master of Business Administration (MBA) from the Leonard School of Business at New York University.
He is an independent Director of Ebro Foods and member of its Executive Committee and Audit and Control Committee, plus a director of Industria de Turbo Propulsores and trustee of the Fundación Bancaria Caixa d’Estalvis i Pensions de Barcelona, known as La Caixa. La Caixa also owns a stake in Telefonica.
Murtra began his career at British Nuclear Fuels then worked for the Management Consultancy DiamondCluster, engaging with large technology companies.
Here’s what seems to be the kicker though: Murtra has held public responsibilities for several years, where he was a specialist in Digital Strategy, Digital Transformation and Public-Private Partnerships. In this role he served as general manager of Red.es, as well as the chief of staff for the Minister of Industry, Tourism and Commerce of the Government of Spain.
He has been Managing Partner of the Board of Closa Investment Bankers, as well as Manager of CREA Inversión, and he boasts an extensive knowledge of the tech industry.
He is an Adjunct Professor of Financial Management and Financial Economics and the Master of Science in Finance and Banking at the Pompeu Fabra University, where he teaches Business Administration and Economics undergraduate students.