New initiatives at cellular network operator Vodacom Group require the experience and guidance of group CEO Alan Knott-Craig (56) in order to succeed, says an analyst.
Responding to news that Knott-Craig has asked the board to release him from his contract early, the analyst, who asked to remain unnamed, says Knott-Craig's medium-term involvement is crucial.
Last week Financial Mail reported Knott-Craig wants to step down as Vodacom Group CEO and would like the company's shareholders to give him the go-ahead to leave before his contract expires in 2009.
When asked if Knott-Craig had spoken to the board about an early exit, Vodacom Group chief communications officer Dot Field would only say: "Knott-Craig's current contract expires in 2009."
"The current compulsory retirement age at Vodacom is 60 years. The succession of Mr Knott-Craig will be smooth and well planned by the Vodacom Group board," she adds.
What now?
However, the analyst says he is not surprised at the news that Knott-Craig would like to exit.
"There have been quite a few intimations that he would like to exit. Unfortunately, if he plans to do so in the near-term, the timing will be terrible. The group has launched some important new initiatives - like Vodacom ISP and Vodacom Converged Solutions - which require his experience and guidance in order to be successful," he explains.
On the other hand, Knott-Craig's early exit could be a precursor to the negotiations that are speculated to be under way between Telkom and UK-based Vodafone for full ownership of the local group, says the analyst.
"If such a deal is on the cards and Telkom sells its Vodacom stake to Vodafone, then chances are a Vodafone person will be deployed to the region to manage the company. If this is not the case, then we have to consider who will take his place," he explains.
Knott-Craig has on several occasions said the company has strong contenders for his role.
Earlier this year, Knott-Craig told ITWeb sister publication iWeek that he thinks he should be replaced with a black economic empowerment candidate.
"I often tell the board that we need a black person at the helm of the company, but they want me on board for now. I still think it's important for our transformation that this company is not run by a white man," he said.
Some of the candidates who are seen as potential empowered successors to Knott-Craig include chief strategy and business development officer Peter Matlare, Vodacom MD Shameel Aziz-Joosub, and ex-Telkom CTO Thami Msimango.
However, if Matlare or Msimango were chosen to take Knott-Craig's place, the group's CFO Leon Crouse and COO Pieter Uys might feel dissatisfied enough to seek other opportunities as well, warns the analyst.
Meanwhile, Vodacom confirms Knott-Craig has not been approached by Telkom to take its CEO role.
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