Vodafone 2004 Annual Report Download - page 62

Vodafone Group Plc Annual Report 2004
60
Board’s Report to Shareholders on Directors’ Remuneration continued
Pensions
Pension benefits earned by the directors in the year to 31 March 2004 were:
Transfer value Employer
Change in Change in of change in Allocation/
Total accrued Change in transfer value accrued accrued Contribution to
benefit at accrued Transfer value Transfer value over year less benefit in benefit net of Defined
31 March benefit over at 31 March at 31 March member excess of member Contribution
2004(1) the year(1) 2003(2) 2004(2) contributions inflation contributions Plans
Name of Director £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Arun Sarin –––––––330.0
Sir Christopher Gent(3) 701.9 39.9 10,388.9 15,519.8 5,097.1 22.6 466.6 –
Peter Bamford 23.0 4.0 217.4 275.5 54.7 3.5 38.3 151.0
Vittorio Colao(4) –––––––5.5
Thomas Geitner(4) 64.7 19.2 510.7 763.1 252.4 18.1 212.9 –
Julian Horn-Smith 480.3 83.2 5,962.4 7,498.8 1,506.3 72.8 1,106.9 –
Ken Hydon 476.6 52.0 7,864.1 9,129.0 1,240.3 40.9 758.9 –
Notes:
(1) The pension benefits earned by the directors are those, which would be paid annually on retirement, on service to the end of the year, at the normal retirement age. Salaries have been averaged over three years where
necessary in order to compare with Inland Revenue regulations. The increase in accrued pension excludes any increase for inflation.
(2) The transfer values have been calculated on the basis of actuarial advice in accordance with the Faculty and Institute of Actuaries’ Guidance Note GN11. No director elected to pay additional voluntary contributions. The
transfer values disclosed above do not represent a sum paid or payable to the individual director. Instead they represent a potential liability of the pension scheme.
(3) Sir Christopher Gent retired from the Board on 30 July 2003 and from the Company on 31 December 2003. In accordance with the standard Rules of the Scheme he received an immediate pension based on his accrued
benefit without actuarial reduction or any enhancement. The figures for 2003 and 2004 are not directly comparable due to different bases of calculation. The 2003 figure is based on service to date and payment at normal
retirement age (60). The 2004 figure reflects an additional year of service, an updated pensionable salary, changes in annuity values and immediate payment.
(4) In respect of Thomas Geitner the amounts as at 31 March 2003 have been translated at the exchange rate at that date of 11.4486: £1. Other amounts in respect of Vittorio Colao and Thomas Geitner have been translated at
the 31 March 2004 exchange rate of 11.4955: £1.
In respect of senior management, the Group has made aggregate contributions of £484,808 into pension schemes.
Directors’ interests in the shares of the Company
Short Term Incentive
Conditional awards of ordinary shares made to executive directors under the STIP, and dividends on those shares paid under the terms of the Company’s scrip dividend scheme
and dividend reinvestment plan, are shown below. STIP shares which vested and were sold or transferred during the year ended 31 March 2004 are also shown below.
Shares conditionally
Shares conditionally awarded during the Shares added
awarded during the year as enhancement during the Shares sold or
Total interest year as base award in shares in respect year through transferred during the
in STIP at respect of 2002/2003 of 2002/2003 dividend year in respect of
1 April 2003 STIP awards STIP awards reinvestment 2000/2001 STIP awards(1) Total interest in STIP as at 31 March 2004
Value at Value at In In
Total date of date of Total respect respect of Number of Number of Total
number of award(2)(3) award(3) number of of base enhancement Base Award enhancement value(4)
shares Number £’000 Number £’000 shares awards shares shares shares £’000
Sir Christopher Gent 793,202 ––––5,950 532,768 266,384 –––
Arun Sarin –––––––––––
Peter Bamford 1,058,209 704,311 843 352,155 422 15,515 ––1,420,127 710,063 2,743
Vittorio Colao – 628,010 752 314,005 376 –––628,010 314,005 1,213
Thomas Geitner 306,570 219,470 263 109,735 131 4,494 ––426,846 213,423 824
Julian Horn-Smith 431,852 882,713 1,057 441,357 529 3,239 290,060 145,031 882,713 441,357 1,705
Ken Hydon 431,852 720,883 863 360,441 432 3,239 290,060 145,031 720,883 360,441 1,392
Notes:
(1) Shares in respect of 2000/2001 STIP awards were transferred on 1 July 2003 and 21 November 2003.
(2) Previously disclosed within directors’ emoluments for the year ended 31 March 2003.
(3) Value at date of award is based on the purchase price of the Company’s ordinary shares on 30 June 2003 of 119.75p.
(4) The value at 31 March 2004 is calculated using the closing middle market price of the Company’s ordinary shares at 31 March 2004 of 128.75p.
The aggregate number of shares conditionally awarded during the year as base award and enhancement shares to the Company‘s senior management, other than executive directors,
is 1,634,000. For a description of the performance and vesting conditions, see “Short/medium term incentive”on page 55.