Telefonica CEO Shakeup: SEPI Proposes Marc Murtra as Replacement
Madrid, Spain - State-owned investment fund SEPI is reportedly seeking to replace Telefonica's Chief Executive Jose Maria Alvarez-Pallete, who has led the telecommunications giant since 2016.
According to sources familiar with the matter, Marc Murtra, currently executive chairman of defense company Indra, is being proposed as Alvarez-Pallete's successor. Indra, controlled by SEPI, has focused on its defense and aerospace operations amid rising military spending in Europe.
The decision is expected to be finalized at an upcoming board meeting. Shareholders will then vote on the matter at a general assembly.
Alvarez-Pallete's current term was set to be renewed at this year's annual general shareholders assembly.
The Spanish government holds a 10% stake in Telefonica through SEPI. This move comes after Saudi Arabia's STC acquired a similar stake in the company in late 2023.
In May 2024, the government appointed Carlos Ocana to Telefonica's board to represent its interests.
Telefonica, like other European telecom operators, has faced challenges from intense competition and the need for significant investment in 5G infrastructure. To fund these investments, the company has been divesting non-core assets and streamlining operations in Latin America.