Vodafone 2014 Annual Report Download - page 80

Annual report on remuneration (continued)
2014 remuneration
In this section we summarise the pay packages awarded to our executive directors for performance in the 2014 nancial year versus 2013.
Specically we have provided a table that shows all remuneration that was earned by each individual during the year and computed a single total
remuneration gure for the year. The value of the annual bonus (‘GSTIP’) was earned during the year but will be paid out in cash in the following year
and the value of the long-term incentive (‘GLTI’) shows the share awards which will vest in June 2014 as a result of the performance through the
three year period ended at the completion of our nancial year on 31 March 2014.
The Remuneration Committee reviews all incentive awards prior to payment and has full discretion to reduce awards if it believes this is appropriate.
The decision need not be on objective grounds. It should be noted that the Remuneration Committee did not exercise discretion in determining the
annual bonus (‘GSTIP’) payout for this year or in deciding the nal vesting level of the long-term incentive awards (‘GLTI’).
Total remuneration for the 2014 nancial year (audited)
Vittorio Colao Andy Halford1Stephen Pusey
2014
£’000
2013
£’000
2014
£’000
2013
£’000
2014
£’000
2013
£’000
Salary/fees 1,110 1,110 700 700 575 575
Taxable benets238 39 47 45 21 21
Annual bonus: GSTIP (see below for further detail) 982 731 620 461 509 379
Total long-term incentive3: 6,464 8,886 2,424 5,164 2,164 2,842
GLTI vesting during the year4 5,630 7,573 2,111 4,401 1,885 2,422
Cash in lieu of GLTI dividends5834 1,313 313 763 279 420
Cash in lieu of pension 333 333 210 210 173 173
Total 8,927 11,099 4,001 6,580 3,442 3,990
Notes:
1 Andy Halford retired on 31 March 2014.
2 Taxable benets include amounts in respect of: – Private healthcare (2014: £1,734; 2013: £1,500);
– Cash car allowance £19,200 p.a.;
– Travel (2014: Vittorio Colao £17,155; Andy Halford £13,848; 2013 (restated): Vittorio Colao £17,921; Andy Halford £24,626; and Stephen Pusey £408); and
– Payment in lieu of holiday at retirement (2014: Andy Halford £11,936).
3 Excludes shares acquired under Vodafone’s Share Incentive Plan (‘SIP’). Andy Halford is the only director who participated and the annual value of the matching shares is £1,500.
4 The value shown in the 2013 column is the award which vested on 28 June 2013 and is valued using the execution share price on 28 June 2013 of 188.03 pence. Please note that the values disclosed in this table in 2013 are
slightly different as the value was based on a share price at 31 March 2013 of 186.60 pence. The value shown in the 2014 column is the award which vests on 28 June 2014 and is valued using an average of the closing share
price over the last quarter of the 2014 nancial year of 234.23 pence. More details are included below.
5 Participants also receive a cash award, equivalent in value to the dividends that would have been paid during the vesting period on any shares that vest. The cash in lieu of dividend value shown in 2013 relates to the award
which vested on 28 June 2013, and the value for 2014 relates to the award which vests on 28 June 2014.
2014 annual bonus (‘GSTIP’) payout (audited)
In the table below we disclose our achievement against each of the performance measures and targets in our annual bonus (‘GSTIP’) and the
resulting total annual bonus payout level for the year ended 31 March 2014 of 88.5%. This is applied to the target bonus level of 100% of base salary
for each executive.
Performance measure
Payout at
target
performance
100%
Payout at
maximum
performance
200%
Actual
payout
%
Target
performance
level
£bn
Actual
performance
level1
£bn Commentary
Service revenue 25% 50% 15.6% 39.4 38.7 Below target performance in Europe
EBITDA 25% 50% 12.4% 12.7 12.3 Below target performance in Europe partially
offset by AMAP
Adjusted free cash ow 25% 50% 45.1% 4.2 4.7 Strong performance in AMAP
Competitive performance assessment 25% 50% 15.4% Compilation of
market-by-market
assessment
Consolidated performance below target
although the number of markets where net
promoter score (‘NPS’) ranks #1 increased
Total annual bonus payout level 100% 200% 88.5%
Note:
1 These gures are adjusted to include the removal of the impact of M&A, foreign exchange movements and any changes in accounting treatment.
2015 annual bonus (‘GSTIP’) amounts Base salary
Target bonus
% of base salary
2014 payout
% of target
Actual payment
(‘000)
Vittorio Colao 1,110,000 100% 88.5% £982
Andy Halford 700,000 100% 88.5% £620
Stephen Pusey 575,000 100% 88.5% £509
Vodafone Group Plc
Annual Report 201478
Directors’ remuneration (continued)