Gent to step down in July

Sir Christopher Gent, the chief executive of telecoms giant Vodafone, is to step down in July, the company confirmed today.

The 54-year-old boss is to be replaced by Arun Sarin, the chief executive of San Francisco-based Accel-KKR Telecom.

Sir Christopher had previously expressed his wish to retire in the latter half of 2003.

A spokeswoman said he had indicated a "couple of times" this year his intention to retire and had said there were "a number of things" he wanted to finish off before he retired.

Sir Chris, who last year earned a salary of £1.2m, will receive no payoff, the spokeswoman said.

The surprise news, exclusively revealed in the Guardian this morning, did not go down well with investors, with Vodafone shares slipping 3.2% to 109p.

"It is certainly a surprise and it is amazing that the shares have held up so well this morning," said Mark Davis, telecoms analyst at WestLB Panmure, which rates Vodafone shares as a "buy".

However, he added that Mr Sarin was of the "right calibre" to succeed Sir Christopher.

Analysts at Nomura, who rate Vodafone as a "sell", were less bullish on the news.

"News that Sir Christopher Gent is to step down as CEO next July is likely to increase volatility in Vodafone shares as investors evaluate his successor," said Nomura in a flash note to investors.

Lord MacLaurin, the chairman of Vodafone, said Mr Sarin had the ability to guide the company into a new era, with next-generation 3G networks set to launch across Europe next year.

"I am delighted that Arun Sarin has made the commitment to take the group forward to the next phase of growth, and that we have identified an individual with the ability, stature and knowledge of Vodafone which make him the ideal person for this role," he said.

Mr Sarin, 48, is already a member of the Vodafone board and was chief executive of the group's American and Asian businesses from 1999 to 2000.

He will join the Vodafone executive committee as chief executive designate on April 1 2003 and will take the same salary and incentives as his predecessor.