Vodafone 1999 Annual Report Download - page 33

Directors Report
Employee involvement
Employee involvement is actively encouraged throughout the Group. In practice, the managing director of each of the
subsidiary companies is responsible for evolving a consultative policy, supported by the Board.
Employee communication is achieved through:
• Chief Executive and Directors’ presentations;
• Team briefing – a systematic method of employee communication covering all employees, at which employees are
encouraged to put forward their ideas;
• Internal written communications – comprising company newsletters, briefing notes, staff notices and bulletins and the
internal distribution of press releases;
• Social functions – the Company actively encourages and financially supports a wide range of sports and social functions
across the Group for its employees.
UK employee share schemes
The directors are committed to the principle that all employees should be able to participate in the Company‘s success by
assistance with share ownership. Two schemes approved by the Inland Revenue have been established which allow all
employees, irrespective of their length of service, to acquire Vodafone Group Plc shares on an advantageous basis.
These schemes are highly regarded by staff and over 50% of staff currently participate in one or both of them.
• Vodafone Group Profit Sharing Scheme – This enables staff to contribute up to 5% of their basic salary each month
to buy shares in the Company. Subject to agreeing that the purchased shares are held for at least two years by the
Trustees of the scheme, for each share the employee buys the Company buys a matching share for the employee. The
shares paid for by the Company are not subject to income tax on their value, provided the employee leaves them with the
Trustees for three years.
• Sharesave Scheme – This enables staff to acquire shares in the Company through monthly savings of up to £250 over
a three or five year period, at the end of which they also receive a tax free bonus. The savings and bonus may then be
used to purchase shares at the option price, which is set at the beginning of the savings contract and usually at a discount
to the then prevailing market price of the Company’s shares. Invitations to participate in this scheme are normally made
annually. This scheme replaced the Vodafone Group Savings Related Share Option Scheme in 1998, as that scheme had
then operated for 10 years.
In addition to the two schemes just described, the Company also has two discretionary share option schemes. The
directors used these schemes to award share options to all UK based staff on the Company’s payroll on 1 July 1998.
These special ‘Millennium Options’ were granted in July 1998 and are exercisable from July 2001.
At the Annual General Meeting in July 1998, the discretionary schemes were replaced with similar schemes known as
The Vodafone Group 1998 Company Share Option Scheme, approved by the Inland Revenue, and The Vodafone Group
1998 Executive Share Option Scheme, which is not Inland Revenue approved.
Employee education, training and development
Continuing education, training and development are important to ensure the future success of the Group. Policies have
been adopted to assist all employees to reach their full potential and a wide variety of schemes and programmes are
offered, aimed at ensuring that relevant education, training and development opportunities are available. Many courses
are provided by the Group’s Training Services department, which has well equipped technical and development training
facilities and a broad range of expertise.
The Group, as a Charter Member of the Duke of Edinburgh’s Award Scheme, has established a sponsored scheme for all
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