The Government gains more power in Indra: Marc Murtra assumes executive functions almost three years after his arrival

The Indra Board has made the decision to grant executive functions to Marc Murtra, who was previously the non-executive president of the company and a key figure for the government within the organization. This comes two years after Murtra joined the Board of Directors and after initially being denied these functions. The granted powers will be limited to opening new markets and managing institutional relationships, while the day-to-day business operations will continue to be overseen by José Vicente of the Mozos.

The director’s increased responsibilities were agreed upon through a joint proposal by Murtra and De los Mozos, which was unanimously approved by the Appointments Committee. The committee consists of three independent directors.

Initially, the government intended for Murtra to become the executive president of the group following the dismissal of Fernando Abril-Martorell in 2021. However, due to Murtra’s lack of experience in managing companies, the independent directors on the Board rejected the government’s proposal.

The government’s intervention caused instability within Indra. The independent directors who rejected Murtra were subsequently dismissed with the cooperation of Indra’s government partners: Amber Capital, Joseph Oughourlian’s fund (Prisa), and Sapa Placencia, a Basque company owned by the Aperribay family who also own the Royal Society. This maneuver prompted an investigation by the National Securities Market Commission (CNMV), which confirmed the cooperation and coordination of these shareholders, with Murtra’s active involvement.

Eventually, new independent directors were nominated, leading to a solution that allowed Murtra to continue as non-executive president alongside Ignacio Mataix as CEO. However, Mataix was dismissed in March 2023, raising doubts once again about Indra’s independence and the influence of the government.

The appointment of De los Mozos, a figure with no political ties to the government and a strong business background, was seen as a resolution to the governance crisis. It also helped build relationships with the People’s Party (PP) and contributed to a significant increase in the company’s stock market performance since May 2023, with a rise of over 50%.

However, the latest move to reinforce Murtra’s position raises concerns about the company’s governance. Good governance practices dictate that the president should be non-executive and independent from the CEO.

According to Indra, Murtra’s new functions will be carried out “in coordination with the operational and business leadership of the CEO, whose delegated powers remain unchanged.” The company states that this delegation of executive functions will allow Murtra to focus more on corporate aspects, expanding into new markets where Indra currently lacks presence, and engaging with public administrations, governments, and international organizations, in line with the company’s position in the Defense market and the current geopolitical context.

Prior to this appointment, Murtra had already been gaining influence within the Board of Directors, first as the president of the Strategy Commission and later as the president of the Executive Delegate Commission.

On Monday, Indra will present its first results under its new strategic plan, which involves growth in the space and defense sector. The attention will once again shift to the leadership decisions within the company after almost a year of institutional stability.

In a statement, De los Mozos later said, “After a year at Indra, and after a thorough analysis of the company, President Murtra and I have proposed reinforcing his functions at the corporate level. This is in line with our efforts to implement the Leading the Future Strategic Plan.”