Arun Sarin, Vodafone’s surf-loving chief executive, was beaming like a Californian Sun King yesterday as he announced plans to pass the crown to his dauphin. Such an outcome would have seemed almost inconceivable three years ago when top shareholders tried to topple him and his board was likened to “the court of the Borgias on a bad day”.

Like Chuck Prince, who took over the throne at Citigroup from Sandy Weill, Mr Sarin had the misfortune to inherit his title from the man who had constructed the empire through several audacious acquisitions, Sir Christopher Gent. Like Mr Prince, Mr Sarin was seen as a sober technocrat who set about trying to make sense of the somewhat disjointed group. But like Mr Prince, Mr Sarin quickly lost the confidence of his predecessor and a large number of his investors.

In the end, he did not suffer the same fate as Mr Prince, though it was touch and go for a while.

Mr Sarin said that yesterday’s full-year figures, which showed earnings per share up 11 per cent, demonstrated that his strategy had been right and - though he wasn’t so blunt - his critics had been wrong.

The figures showed very strong, if slowing, growth from emerging markets. Yet, Mr Sarin faced fierce criticism for his acquisitions in emerging markets such as Turkey.

He also took flak for adandoning Sir Christopher’s strategy of being present in all leading industrialised countries selling some of his acquisitions, including the struggling business in Japan. He wrote down the value of European companies bought at the height of the telecoms bubble.

Mr Sarin was given the hardest time over his strategy in the US where his failed $38 billion offer for AT&T Wireless was widely seen as a PR disaster. But he is now given credit for his refusal to overpay while his refusal to sell Vodafone’s stake in Verizon Wireless, which prompted Standard Life, one of the group’s biggest shareholders, to demand his abdication, looks astute. The stake, worth $25 billion at the time, is now valued at more than $70 billion.

If Verizon had made an offer for the stake when Mr Sarin was weak, he would probably have been forced to accept it. But now the two companies are locked in a stalemate with Vodafone unwilling to sell and Verizon unable to afford it.

A turning point for Mr Sarin was the appointment two years ago of a new chairman, Sir John Bond, the former head of HSBC, and deputy chief executive, Vittorio Colao.

It soon became apparent that Mr Colao was Mr Sarin’s chosen successor and it is a measure of the strength of Mr Sarin’s position that while Sir John insisted that Vodafone fully explore outside candidates, there was never any doubt that Mr Colao would get the job.

Vodafone’s share price has recovered strongly since the nadir of Mr Sarin’s fortunes. During his five-year tenure, total returns to shareholders have averaged about 10 per cent, respectable enough for an industry where competition is driving down prices inexorably.

Competition in the mature European mobile market remains intense and revenues are likely to be clipped further by regulatory action on so-called roaming charges.

Mr Sarin’s response has been to turn Vodafone into a “total communications” company, spanning broadband and data. as well as mobile.

The early signs are encouraging. But it is too soon to say whether this strategy and the continued growth in emerging markets will be enough to offset the pressures on the mature mobile business. Mr Colao’s reign is likely to be as challenging as Mr Sarin’s if not as turbulent.

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