Vodafone 2014 Annual Report Download - page 82

Annual report on remuneration (continued)
All-employee share plans
The executive directors are also eligible to participate in the UK all-employee plans.
Summary of plans
Sharesave
The Vodafone Group 2008 Sharesave Plan is an HM Revenue & Customs (‘HMRC’) approved scheme open to all staff permanently employed by
aVodafone Company in the UK as of the eligibility date. Options under the plan are granted at up to a 20% discount to market value. Executive
directors’ participation is included in the option table on page 81.
Share Incentive Plan
The Vodafone Share Incentive Plan (‘SIP’) is an HMRC approved plan open toall staff permanently employed by a Vodafone Company in the UK.
Participants may contribute up to a maximum of £125 per month (or5%of salary if less) which the trustee of the plan uses to buy shares on their
behalf. An equivalent number of shares are purchased with contributions from the employing company. UK-based executive directors are eligible
toparticipate.
Pensions (audited)
Vittorio Colao, Andy Halford and Stephen Pusey received a cash allowance of 30% of base salary in lieu of pension contributions during the 2014
nancial year. No executive directors accrued benets under any dened contribution pension plans during the year.
The executive directors are provided benets 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 benet determined by the insurer, would be provided until normal retirement date (aged 60).
Andy Halford retired on 31 March 2014 aged 55. Until 2010, he participated in a legacy dened benet pension plan into which no additional
contributions were payable in 2014. On 31 March 2010 he took the opportunity to take early retirement from this pension scheme due to the
closure of the scheme (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 reect 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, he 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. The pension increased on 1 April 2011, 1 April 2012 and 1 April 2013 by 5%, in line with the scheme rules,
to £20,605 per year from 1 April 2013.
Alignment to shareholder interests (audited)
All of our executive directors have shareholdings in excess of their goals. Current levels of ownership by the executive directors, and the date
by which the goal should be or should have been achieved, are shown below. The values are calculated using an average share price over the six
months to 31 March 2014 of 229.32pence. These values do not include the value of the shares that will vest in June 2014.
At 31 March 2014
Goal as a %
of salary
Current %
of salary held
% of goal
achieved
Number
of shares1
Value of
shareholding
(£m)
Date for goal
to be achieved
Vittorio Colao 400% 1,875% 469% 9,077,302 20.8 July 2012
Andy Halford (ownership position at retirement
on31 March 2014) 300% 755% 252% 2,305,059 5.3 July 2010
Stephen Pusey 300% 630% 210% 1,579,543 3.6 June 2014
Note:
1 During the year the Verizon transaction and a share consolidation took place.
Collectively the Executive Committee including the executive directorsown more than 22 million Vodafone shares, with a value of over £50 million.
Directors’ interests in the shares of the Company (audited)
A summary of interests in shares and scheme interests of the directors who served during the year is given below. More details of the performance
shares and options follows.
At 31 March 2014
Share plans Shares options
Total number
of interests
in shares1
Unvested GLTI Shares
(with
performance
conditions)
Share Incentive Plan
(without
performance
conditions)
SAYE
(unvested without
performance
conditions)
Executive directors
Vittorio Colao 24,251,716 15,157,846 –16,568
Andy Halford (position at retirement on 31 March 2014) 8,561,152 6,249,860 17,014 6,233
Stephen Pusey 7,719,776 6,140,233 – –
Total 40,532,644 27,547,939 17,014 22,801
Note:
1 Includes shares in the share incentive plan (SIP), interests of connected persons, unvested share awards and share options. During the year the Verizon transaction and a share consolidation took place.
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Vodafone Group Plc
Annual Report 201480
Directors’ remuneration (continued)