Vodafone 2015 Annual Report Download - page 81
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Please find page 81 of the 2015 Vodafone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Remuneration policy (continued)
The remuneration policy table
The table below summarises the main components of the reward package for Executive Directors.
Purpose and link to strategy Opportunity Performance metrics
To attract and retain the best talent. Salaries are usually reviewed annually and xed for
12months commencing 1 July. Decision is inuenced by:
level of skill, experience and scope of responsibilities
ofindividual;
business performance, scarcity of talent, economic
climate and market conditions;
increases elsewhere within the Group; and
external comparator groups (which are used for
reference purposes only) made up of companies
ofsimilar size and complexity to Vodafone.
a Average salary increases for existing Executive Committee members (including Executive
Directors) will not normally exceed average increases for employees in other appropriate parts
of the Group. Increases above this level may be made in specic situations. These situations
couldinclude (but are not limited to) internal promotions, changes to role, material changes
to the business and exceptional company performance.
None.
To remain competitive within the marketplace. Executive Directors may choose to participate in the
dened contribution pension scheme or to receive a cash
allowance inlieu of pension.
a The pension contribution or cash payment is equal to 30% of annual gross salary. In light
of pension levels elsewhere in the Group we have decided to reduce the pension benets level
from 30% to no more than 24% from November 2015.
None.
Benets
the marketplace.
Travel related benets. This may include (but is not limited
to) company car or cash allowance, fuel and access
to a driver where appropriate.
Private medical, death and disability insurance and annual
health checks.
offer them support in line with Vodafone’s relocation
or international assignment policies. This may cover
(but is not limited to) relocation, cost of living allowance,
housing, home leave, education support, tax equalisation
and advice.
Legal fees if appropriate.
Other benets are also offered in line with the benets
offered to other employees for example, all-employee
share plans, mobile phone discounts, maternity/paternity
benets, sick leave, paid holiday, etc.
a Benets will be provided in line with appropriate levels indicated by local market practice in the
country of employment.
a We expect to maintain benets at the current level but the value of benet may uctuate
depending on, amongst other things, personal situation, insurance premiums and other
external factors.
None.
Annual Bonus –
Global Short-
Plan (‘GSTIP’)
the year.
of performance over the one year operating cycle.
The nancial metrics are designed to both drive our
growth strategies whilst also focusing on improving
operating efciencies. Measuring competitive
score (‘NPS’) means providing a great customer
experience remains at the heart of what we do.
weightings are reviewed annually to ensure they continue
to support our strategy.
Performance over the nancial year is measured against
stretching nancial and non-nancial performance targets
set at the start of the nancial year.
for performance over the previous year.
a Bonuses can range from 0–200% of base salary, with 100% paidfor on-target performance.
Maximum is only paid out for exceptional performance.
a Performance over each nancial year
is measured against stretching targets set
at the beginning of the year.
a The performance measures normally
comprise of a mix of nancial and
strategic measures. Financial measures
may include (but are not limited to) prot,
revenue and cash ow with a weighting
of no less than 50%. Strategic measures
may include (but are not limited to)
competitive performance metrics such
as net promoter score and market share.
Long-Term
Incentive – Global
Long-Term
(‘GLTI’) base
this table)
To motivate and incentivise delivery ofsustained
performance over the long term.
To support and encourage greater shareholder alignment
through a high level ofpersonal nancial commitment.
The use of free cash ow as the principal performance
measure ensures we apply prudent cash management
and rigorous capital discipline to our investment
decisions, whilst the use of TSR along with a performance
focused on the long-term interests of our shareholders.
Award levels and the framework for determining vesting
our strategy.
Long-term incentive base awards consist of performance
shares which are granted each year.
full target award.
based on Group operational and external performance.
Dividend equivalents are paid in cash after the
vestingdate.
a The basic target award level is 137.5% of base salary for the Chief Executive (110% for other
Executive Directors).
a The target award level may increase up to 237.5% of base salary for the Chief Executive
(or 210% for others) ifthe individual commits to a co-investment in shares equal in value to their
base salary.
a Minimum vesting is 0% of target award level, threshold vesting is 50% and maximum vesting
is250% of the target award level.
a Maximum long-term incentive face value at award of 594% of base salary for the Chief Executive
(237.5% x 250%) and 525% for others.
a The awards that vest accrue cash dividend equivalents over the three year vesting period.
a Awards vest to the extent performance conditions are satised. There is a mandatory holding
period where 50% of the post-tax shares are released after vesting, a further 25% after the rst
anniversary of vesting, and the remaining 25% will bereleased after the second anniversary.
a Performance is measured against
stretching targets set at the beginning
of the performance period.
a Vesting is determined based on a matrix
of two measures:
a adjusted free cash ow as our
operational performance measure;
and
a relative TSR against a peer group
of companies as our external
performance measure.
Overview Strategy review Performance Governance Financials Additional information Vodafone Group Plc
Annual Report 2015
79