Vodafone 2014 Annual Report Download - page 182

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7. Share-based payments
Accounting policies
The Group operates a number of equity-settled share-based compensation plans for the employees of subsidiaries using the Company’s equity
instruments. The fair value of the compensation given in respect of these share-based compensation plans is recognised as a capital contribution
to the Company’s subsidiaries over the vesting period. The capital contribution is reduced by any payments received from subsidiaries in respect
of these share-based payments.
The Company currently uses a number of equity settled share plans to grant options and shares to the directors and employees of its subsidiaries.
At 31 March 2014 the Company had 27 million ordinary share options outstanding (2013: 40 million) and no ADS options outstanding (2013:nil).
The Company has made a capital contribution to its subsidiaries in relation to share-based payments. At 31 March 2014 the cumulative capital
contribution net of payments received from subsidiaries was £131 million (2013: £205 million). During the year ended 31 March 2014 the capital
contribution arising from share-based payments was £103 million (2013: £134 million), with payments of £177 million (2013: £246 million) received
from subsidiaries.
Full details of share-based payments, share option schemes and share plans are disclosed in note 27 “Share-based payments” to the consolidated
nancial statements.
8. Reserves and reconciliation of movements in equity shareholders’ funds
Share Capital Own Prot Total equity
Share premium redemption Capital Othershares and loss shareholders’
capital account reserve reserve reserves held account funds
£m £m £m £m £m £m £m £m
1 April 2013 3,866 43,087 10,388 88 834 (9,103) 43,231 92,391
Allotment of shares – 2 – – – – – 2
Own shares released on vesting of
share awards –––––194 –194
Prot for the nancial year ––––––10,970 10,970
Dividends ––––––(40,566) (40,566)
Capital contribution given relating to
share-based payments ––––103 – – 103
Contribution received relating to
share-based payments ––––(177) – – (177)
Capital reduction and creation of B and
C shares 16,613 (27,008) (10,462) –––20,857 –
Cancellation of B shares (16,613) –––––1,115 (15,498)
Share cancellations (74) –74 – – 1,648 (1,648) –
Other movements –28 – – (2) (28) (59) (61)
31 March 2014 3,792 16,109 –88 758 (7,289) 33,900 47,358
The prot for the nancial year dealt with in the accounts of the Company is £10,970 million (2013: £7,153 million). Under English law, the amount
available for distribution to shareholders is based upon the prot and loss reserve of the Company and is reduced by the amount of own shares held
and is limited by statutory or other restrictions.
The auditor’s remuneration for the current year in respect of audit and audit-related services was £0.9 million (2013: £0.6 million) and for non-audit
services was £3.5 million (2013: £0.1 million).
The directors are remunerated by the Company for their services to the Group as a whole. No remuneration was paid to them specically in respect
of their services to Vodafone Group Plc for either year. Full details of the directors’ remuneration are disclosed in “Directors’ remuneration” on pages
69 to 85.
There were no employees other than directors of the Company throughout the current or the preceding year.
Vodafone Group Plc
Annual Report 2014180
Notes to the Company nancial statements (continued)