The political voracity of Pedro Sánchez’s Government, through the Sociedad Estatal de Participaciones Industriales (SEPI), has precipitated the change of leadership at Telefónica. José María Álvarez-Pallete, the company’s Chairman since 2016, has been dismissed this Saturday in a move which evidences the weight of the Executive in the strategic decisions of large companies. Telefónica’s board of directors has appointed Marc Murtra, current chairman of Indra and a figure closely linked to the government, as the new executive chairman, the company informed the National Securities Market Commission (CNMV).
The change: “adaptation” to the new shareholders
In a statement sent to the stock exchange supervisor, Telefónica justified the change as an “orderly renewal” for adapting to its new shareholding structure, in which stand out the recent movements of the State, through SEPI, and of CriteriaCaixa, which compete for keeping the strategic control of the operator. The decision also responds to pressures from relevant shareholders, such as the Saudi STC, which acquired a 10% of the company’s capital in 2023, generating an internal reconfiguration of the Board of Directors. Álvarez-Pallete’s contract will be terminated with a compensation that could reach 20 million euros, as stipulated in Telefónica’s corporate reports. The former chairman, who also heads the GSMA, has accepted the board’s decision, receiving unanimous thanks from its members for his work over more than two decades.
A strategic replacement with political influence
SEPI, which since May 2024 controls 10% of Telefónica, has played a crucial role in this change. The Government has not hidden its intention of consolidating its influence in strategic companies, a line which it already marked with the appointment of Murtra in Indra in 2021, when it also used its power in that company’s capital. With this appointment, the Executive reinforces its control in a key sector, in a context of growing presence of foreign investors.
The change in Telefónica’s chairmanship also reflects a move by the government to maintain the company’s “Spanishness” in the face of a growing foreign presence. CriteriaCaixa has also acquired a 9.99% stake in Telefónica, bringing it closer to the state’s shareholding and consolidating its position as a strategic player on the board.
Marc Murtra, the government’s choice
Telefónica’s new Executive Chairman, Mr. Marc Murtra, is a figure close to the Executive. An industrial engineer with experience in strategic sectors, Mr. Murtra led Indra since 2021 under the Government’s proposal, where SEPI controls 28% of the capital. His arrival at Telefónica coincides with a complex context for both companies, with challenges such as Indra’s internal restructuring and the growing international pressure on Telefónica.
Political criticism and business reactions
The decision has generated harsh criticism from the opposition, which describes this move as yet another example of “government interference in private companies”. The Popular Party has accused Pedro Sánchez of prioritizing political control over business stability, warning that these changes could negatively affect the international perception of Spain as a reliable environment for investments. For its part, Vox has pointed out that the Executive is “turning Telefónica into an appendage of state power”. BBVA, one of Telefónica’s main financial partners, has expressed its “concern about the drastic changes” in the company’s management. Sources inside the bank have pointed out that, although they are confident in Telefónica’s solvency, this restructuring could generate uncertainty in the markets, especially after the recent movements in the Saudi shareholding. The UGT, a union historically linked to labor interests, has also expressed surprise and caution about the change. The organization has issued a statement expressing “concern about the possible labor implications” of the new presidency. “It is essential that this changeover does not affect the stability of the workers or the strategic plans already established,” the union stressed, requesting an urgent meeting with the new president to clarify the future direction of the company.
