Vodafone 2005 Annual Report Download - page 73

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Governance |71
Pensions
Pension benefits earned by the directors in the year ended 31 March 2005 were:
Transfer value Employer
Change in Change in of change in allocation/
Change in transfer value accrued accrued contribution to
Total accrued accrued Transfer Transfer over year less benefit in benefit net of defined
benefit at benefit over value at value at member excess of member contribution
31 March 2005(1) the year(1) 31 March 2004(2) 31 March 2005(2) contributions inflation contributions Plans
Name of Director £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Arun Sarin –––––––330.0
Peter Bamford 27.3 4.3 275.5 348.8 69.7 3.6 42.4 192.4
Vittorio Colao –––––––5.3
Thomas Geitner 92.7 28.0 763.1 1,163.2 400.1 25.9 325.1 –
Sir Julian Horn-Smith 548.1 67.8 7,498.8 9,090.3 1,559.2 52.4 836.9 –
Ken Hydon(3) 506.2 29.7 9,129.0 10,241.1 1,097.0 14.4 276.7 98.9
Notes:
(1) The accrued pension benefits earned by the directors are those which would be paid annually on retirement, based on service to the end of the year, at the normal retirement age. 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) Ken Hydon reached 60 years of age on 3 November 2004 and will retire from the Company following the AGM on 26 July 2005. In accordance with the standard rules of the scheme, he received an immediate pension based on his accrued benefit with-
out actuarial reduction or any enhancement. From 1 December 2004, Ken Hydon accrued a cash allowance equivalent to 30% of his base salary. This will cease when he leaves the Company.
In respect of senior management, the Group has made aggregate contributions of £799,524 into pension schemes. The Company’s proposals in light of the forthcoming changes
in pension legislation which are due to take effect on 6 April 2006 are detailed under “Pensions”on page 68.
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 2005 are also shown below.
Shares conditionally
Total awarded during the Shares conditionally Shares added
interest year as base award in awarded during the year during the Shares sold or transferred during
in STIP respect of STIP as enhancement shares year through the year in respect of the
on 1 April awards for the 2004 in respect of STIP awards dividend 2001, 2002 and 2003 financial Total interest in STIP as at
2004 financial year for the 2004 financial year reinvestment years(1) 31 March 2005
Number of
Total Value at date Value at date In respect In respect of Base Number of Total
number of of award(2)(3) of award(2) Total number of base enhancement Award enhancement value(4)
shares Number £’000 Number £’000 of shares awards shares shares shares £’000
Arun Sarin – 1,013,733 1,217 506,867 608 –––1,013,733 506,867 2,136
Peter Bamford 2,130,190 601,320 722 300,661 361 9,733 722,305 361,152 1,305,631 652,816 2,752
Vittorio Colao 942,015 –––––628,010 – –––
Thomas Geitner 640,269 ––––2,819 209,255 104,628 219,470 109,735 463
Sir Julian Horn-Smith 1,324,070 ––––52 34 18 882,713 441,357 1,860
Ken Hydon 1,081,324 ––––52 34 18 720,883 360,441 1,519
Notes:
(1) Shares in respect of the STIP awards for the 2001 and 2002 financial years were transferred on 1 July 2004 and 27 August 2004. In accordance with the terms of the STIP, the enhancement award for the 2003 financial year made to Vittorio Colao was
forfeited on his resignation from the Board.
(2) Previously disclosed within directors’ emoluments for the year ended 31 March 2004.
(3) Value at date of award is based on the price of the Company’s ordinary shares on 1 July 2004 of 120.0118p.
(4) The value at 31 March 2005 is calculated using the closing middle market price of the Company’s ordinary shares at 31 March 2005 of 140.50p.
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 585,536. For a description of the performance and vesting conditions, see “Short/medium term incentive”on page 66.