Vodafone 2007 Annual Report Download - page 86

84 Vodafone Group Plc Annual Report 2007
Board’s Report to Shareholders on Directors’ Remuneration
continued
Pensions
Pension benefits earned by the directors serving during the year ended 31 March 2007 were:
Change in Change in Transfer value of Employer
transfer value accrued change in allocation/
Change in accrued over year benefit accrued benefit contribution to
Total accrued benefit benefit over Transfer value at Transfer value at less member in excess of net of member defined
at 31 March 2007(1) the year(1) 31 March 2006(2) 31 March 2007(2) contributions inflation contributions contribution plans
Name of Director £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Arun Sarin –––– – – – 382.0
Vittorio Colao(3) –––––– – –
Andy Halford(4) 17.0 3.7 182.8 223.4 36.7 3.2 38.1 –
Thomas Geitner(5) 232.1 116.3 1,971.4 5,138.9 3,167.5 112.1 2,482.0 –
Sir Julian Horn-Smith(6) 605.2 –13,231.0 15,186.5 1,955.5 – – –
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) Vittorio Colao has elected to take a 30% pension allowance as cash. This allowance is included in the ‘other’ category for the year in the table on page 83.
(4) Andy Halford is a member of the Vodafone’s UK defined benefit scheme for salary up to the scheme cap of £110,000. On base salary in excess of this cap he receives 30% pension allowance, which he
has elected to take as cash. This allowance is included in the ‘other’ category for the year in the table on page 83.
(5) Thomas Geitner will be eligible to receive his pension from 1 January 2008. The increase in transfer value is due to an increase in value from taking early retirement. This is caused by the method of
valuation adopted by German actuarial practice.
(6) Sir Julian Horn-Smith retired for pensions purposes on 6 April 2006 and took a lump sum of £1,361,601. The figures in the table exclude allowance for this figure. If allowance is included, in accordance
with Companies Act Regulations, the transfer value at 31 March 2007 becomes £13,538,000 (based on a pension in payment of £531,115 p.a.) and the change in value over the year becomes
£307,000.
In respect of senior management, the Group has made aggregate contributions of £0.89 million into pension schemes.
Directors’ interests in the shares of the Company
Short term incentives
Conditional awards of ordinary shares made to executive directors under the STIP/Deferred Share Bonus, and dividends on those shares paid under the
terms of the Company’s dividend reinvestment plan, are shown below. STIP shares which vested and were sold or transferred during the year ended
31 March 2007 are also shown below.
Shares conditionally awarded
during the year as matching
Total interest shares in respect of DSB Shares sold or transferred during the
in STIP at awards for the 2006 financial year in respect of the 2004 financial Shares forfeited during the year in Total interest in STIP/DSB as at
1 April 2006 year year(1) respect of the 2004 financial year 31 March 2007
Value at date of In respect of In respect of
Total number of award(2)(3) In respect of enhancement In respect of enhancement Number Total Value(4)
shares Number £’000 base awards shares base awards shares of shares £’000
Arun Sarin 2,781,347 619,304 712 1,013,733 506,867 – – 1,880,051 2,547
Vittorio Colao –– – – – –– – –
Andy Halford 292,299 240,840 277 194,866 97,433 – – 240,840 326
Thomas Geitner 428,179 – – 285,453 – – 142,726 – –
Sir Julian Horn-Smith –– – – – –– – –
Notes:
(1) Shares in respect of the STIP awards for the 2004 financial year were transferred on 3 July 2006.
(2) Previously disclosed with the directors’ emoluments for the year ended 31 March 2006.
(3) Value at date of award is based on the price of the Company’s ordinary shares on 13 June 2006 of 115p.
(4) The value at 31 March 2007 is calculated using the closing middle market price of the Company’s ordinary shares at 30 March 2007 of 135.5p.
The aggregate number of shares conditionally awarded during the year under the Deferred Share Bonus to the Company‘s senior management, other than
executive directors, is 304,325. For a description of the performance and vesting conditions, see “Short and medium term incentive: Deferred Share Bonus”
on page 80.