Indra has announced that it has launched a search for a new chief executive following the decision not to renew the contract of the current CEO, José Vicente de los Mozos, which expires on 30 June.
Reported by Editorial Team Directors
Indra’s CEO, José Vicente de los Mozos, will not continue in his role, the company announced on Monday, adding that it has launched a selection process to find a new CEO.”
As part of the process leading up to the convening of the company’s next ordinary general meeting of shareholders, in view of the imminent expiry of his term of office and due to the non-renewal of José Vicente de los Mozos’s contract, the company’s Appointments, Remuneration and Corporate Governance Committee, in accordance with the board of directors’ regulations, has today launched a selection process to find a candidate for the position of CEO,” the firm announced in a statement sent to the Spanish National Securities Market Commission (CNMV).
The “non-renewal” of José Vicente de los Mozos is an unexpected decision taken following the arrival of Ángel Simón as non-executive chairman, as the former had communicated his intention to renew his contract.
Renta 4’s analysis team notes that this instability in Indra’s leadership, following the resignation of its Executive Chairman Ángel Escribano in early April and now that of the CEO, is “negative as it hinders the continuity of the group’s strategy at a key moment for Indra, in the midst of a process of transformation and growth, with an order book at historic highs and in the position of being one of the three companies tasked with channelling the significant investment in defence in Spain over the coming years”.
De los Mozos’ departure comes just over a month and a half after Ángel Simón was appointed as non-executive chairman to replace Ángel Escribano. His appointment, initially without executive duties, took a turn at the end of April when the board agreed to appoint him as a member of the strategy committee and the executive committee to fill the vacancies created following Ángel Escribano’s resignation.
Following this decision and after meeting, both the strategy committee and the executive committee appointed Ángel Simón as chairman of both committees, thereby granting him executive powers.
More portfolio than governance
Although Renta 4 had expected a negative reaction in the share price, Indra’s shares are trading this Tuesday with gains of up to 4%. Meanwhile, analysts at Alphavalue/Divacons note that this movement reflects the leadership tensions currently unfolding within the company. ‘Although the news could generate some short-term uncertainty and put pressure on the share price, the group continues to benefit from solid visibility in its business.’
