Vodafone axes UK marketing boss amid board rift talk

LONDON - Britain's Vodafone Group, dogged by rumours of serious boardroom rifts, axed its marketing chief today, fuelling talk Chief Executive Arun Sarin was asserting his authority by clearing out the old guard.

The world's biggest mobile operator by revenues said Chief Marketing Officer Peter Bamford would leave the company on April 1. A spokesman said Bamford was leaving as part of a "fundamental review" of the group's marketing operations.

"He has been given notice to leave in accordance with his contract," the spokesman said. Vodafone did not name a successor but said global consumer marketing director Frank Rovekamp would take over Bamford's duties.

Analysts said Bamford's exit was another case of a director who was closely identified with the former regime of former Chief Executive Christopher Gent leaving the company.

"It has been a bit of out-with-the-old and in-with-the-new recently (at Vodafone) in terms of directors. He's is another old crew guy going," said Dresdner Kleinwort Wasserstein analyst Robert Grindle.

Other notable exits include former Finance Director Ken Hydon and deputy Chief Executive Julian Horn-Smith. Chairman Ian MacLaurin is also due to step down in July and will be replaced by HSBC Chairman John Bond.

Analysts said Sarin was emerging as the winner in the latest round of boardroom spats.

"If you look at the press a couple of weeks ago, everybody was saying Arun Sarin has got to go. This week, it is 'the chairman has got to go'," said one analyst, who asked not to be named.

"The new regime is bedding down and in the ascendancy," added Grindle.

News of Bamford's exit comes amid reports of serious differences between Sarin and the so-called old guard at the group, led by Chairman MacLaurin and former CEO Gent.

Several UK newspapers have reported that MacLaurin wanted to oust Sarin, under whose watch the group's revenue growth pace is slowing and its strategy questioned by investors. Vodafone, a serial acquirer in the past, last week announced a cut of up to £28 billion ($76.04 billion) to the goodwill value of its assets and said it was in talks to sell its Japanese unit, in what will be a major break from past strategy.

Gent was reported by many papers to have considered voting against Sarin's re-election last year but was talked out of it by MacLaurin, who had since turned against Sarin.

Vodafone has said all along that Sarin continued to enjoy the support of the group's board, although some investors in the company have recently called his leadership into question.

"In terms of Sarin ... I think there's still issues in terms of leadership which have to be addressed, and the shareholders in general have got concerns about that," David Cumming, head of UK equities at shareholder Standard Life Investments, told the BBC's Radio 4 this week.

- REUTERS