Vodafone 2011 Annual Report Download - page 71

Vodafone Group Plc Annual Report 2011 69
Governance
Audited information for executive directors
Remuneration for the year ended 31 March 2011
The remuneration of executive directors was as follows:
Salary/fees Incentive schemes(1) Cash in lieu of pension Benefits/other(2) Total
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Chief Executive
Vittorio Colao 1,043 975 1,323 1,255 313 292 55 146 2,734 2,668
Other executive directors
Andy Halford 694 674 869 868 208 169 27 26 1,798 1,737
Michel Combes 763 737 745 818 229 221 22 52 1,759 1,828
Stephen Pusey 538 491 683 632 161 147 31 38 1,413 1,308
Total 3,038 2,877 3,620 3,573 911 829 135 262 7,704 7,541
Notes:
(1) These figures are the cash payouts from the 2011 financial year Vodafone GSTIP and are in relation to the performance against targets in adjusted operating profit, service revenue, free cash flow and
competitive performance for the financial year ended 31 March 2011.
(2) Includes amounts in respect of cost of living allowance, private healthcare and car allowance.
The aggregate remuneration we paid to our Executive Committee(1) for services for the year ended 31 March 2011 is set out below. The aggregate number
of Executive Committee members at 31 March 2011 was six, a reduction of two compared to 31 March 2010.
2011 2010
£’000 £’000
Salaries and fees 3,151 3,655
Incentive schemes(2) 4,081 4,417
Cash in lieu of pension 456 164
Benefits/other 799 3,376
Total 8,487 11,612
Notes:
(1) Aggregate remuneration for the Executive Committee is in respect of those individuals who were members of the Executive Committee, other than the executive directors, during the year ended 31
March 2011 and reflects compensation paid from either 1 April 2010 or date of appointment to the Executive Committee, to 31 March 2011 or date of leaving, where applicable.
(2) Comprises the incentive scheme information for the Executive Committee members on an equivalent basis to that disclosed for directors in the table at the top of this page. Details of share incentives
awarded to directors and other members of the Executive Committee are included in footnotes to “Long-term incentives” on page 70.
Pensions
Vittorio Colao, Andy Halford, Michel Combes and Stephen Pusey take a cash allowance of 30% of base salary in lieu of pension contributions.
The Executive Committee, including the executive directors, are provided benefits in the event of death in service. They also have an entitlement under a
long-term disability plan from which two-thirds of base salary, up to a maximum benefit determined by the insurer, would be provided until normal
retirement date.
Pension benefits earned by the director in the year ended 31 March 2011 were:
Transfer value Employer
Change in Change in of change allocation/
Change in transfer value accrued in accrued contribution
Total accrued accrued Transfer Transfer over year less benefit in benefit net to defined
benefit at 31 benefit over value at 31 value at 31 member excess of of member contribution
March 2011(1) the year(1) March 2010(2) March 2011(2) contributions inflation(3) contributions Plans
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Andy Halford 17.8 – 628.0 701.2 73.2 (0.8) (32.8) –
Notes:
(1) Andy Halford took the opportunity to take early retirement from the pension scheme due to the closure of the scheme on 31 March 2010 (aged 51 years). In accordance with the scheme rules, his
accrued pension at this date was reduced with an early retirement factor for four years to reflect the fact that his pension is being paid before age 55 and is therefore expected to be paid out for a longer
period of time. In addition, Andy Halford exchanged part of his early retirement pension at 31 March 2010 for a tax-free cash lump sum of £118,660. The pension in payment at 31 March 2010 was
£17,800 per year. This pension is due to increase on 1 April 2011 by 5%, in line with the scheme rules, to £18,700 per year. However, at 31 March 2011 the pension in payment remained at £17,800 per
year as shown above. No member contributions are payable as Andy Halford is in receipt of his pension.
(2) The transfer value at 31 March 2011 has been calculated on the basis and methodology set by the trustees after taking actuarial advice. No director elected to pay additional voluntary contributions.
The transfer value disclosed above does not represent a sum paid or payable to the individual director. Instead it represents a potential liability of the pension scheme.
(3) Inflation has been taken as the increase in the retail price index over the year to 30 September 2010.
In respect of the Executive Committee, the Group has made aggregate contributions of £508,600 (2010: £851,000) into defined contribution pension schemes.