Vodafone 2015 Annual Report Download - page 87

Long-term incentive (‘GLTI’) award vesting in July 2015 (audited)
The 2013 long-term incentive (‘GLTI’) awards which were made in July 2012 will lapse in full in July 2015. The performance conditions for the three
year period ending in the 2015 nancial year are as follows:
TSR outperformance
Adjusted free cash ow measure £bn
0%
(Up to median)
4.5%
(65th percentile equivalent)
9%
(80th percentile equivalent)
Below threshold <15.4 0% 0% 0%
Threshold 15.4 50% 75% 100%
Target 17.9 100% 150% 200%
Maximum 20.4 150% 225% 300%
TSR peer group
BT Group Telecom Italia
Deutsche Telekom Telefónica
Orange
Emerging market composite (consists of the average
TSRperformance of Bharti, MTN and Turkcell)
Adjusted free cash ow for the three year period ended on 31 March
2015 was £14.8 billion which compares with a threshold of £15.4 billion
and atarget of £17.9 billion.
The chart to the right shows that our TSR performance against our peer
group for the same period resulted in an outperformance of the median
by 6.5% a year.
Using the combined payout matrix above, this performance resulted
in a payout of 0.0% of target.
The combined vesting percentages are applied to the target number
of shares granted as shown below.
2013 GLTI award: TSR performance (growth in the value of
a hypothetical US$100 holding over the performance period,
six month averaging)
160
150
130
140
120
110
100
90 03/12 09/12 03/13 09/13 03/14 09/14 03/15
Vodafone Group Median of peer group Outperformance of median of 9% p.a.
100 103
106
97
92 94
121
107
93
154
121
102
142
146
119
145
154
121
104
2013 GLTI performance share awards vesting in July 2015
Maximum
number
of shares
Target
number
of shares
Adjusted free cash
ow performance
payout
% of target TSR multiplier
Overall vesting
% of target
Number of
shares vesting
Value of
shares vesting
(‘000)
Vittorio Colao 4,511,080 1,503,693 0.0% 1.7 times 0.0% 0£0
Stephen Pusey 2,072,397 690,799 0.0% 1.7 times 0.0% 0£0
Nick Read11,880,086 626,695 0.0% 1.7 times 0.0% 0£0
Notes:
1 Nick Read was appointed to the Board on 1 April 2014. His award in the table above reects a grant made prior to his appointment to the main Board.
These share awards will lapse on 3 July 2015. Specied procedures are performed by PricewaterhouseCoopers LLP over the adjusted free cash ow
to assist with the Committee’s assessment of performance. The performance assessment in respect of the TSR outperformance of the peer group
median is undertaken by Towers Watson. Details of how the plan works can be found on pages 78to 80.
Long-term incentive (‘GLTI’) awarded during the year (audited)
The 2015 long-term incentive awards made in June 2014 under the Global Long-Term Incentive Plan (‘GLTI’). The performance conditions are
a combination of adjusted free cash ow and TSR performance as follows:
TSR outperformance
Adjusted free cash ow measure £bn
0%
(Up to median)
5%
(65th percentile equivalent)
10%
(80th percentile equivalent)
Below threshold <3.4 0% 0% 0%
Threshold 3.4 50% 75% 100%
Target 5.1 100% 150% 200%
Maximum 6.8 125% 187.5% 250%
TSR peer group
Bharti Orange
BT Group Telecom Italia
Deutsche Telekom Telefónica
MTN
The combined vesting percentages are applied to the target number of shares granted. The adjusted free cash ow gures shown above are
considerably lower than prior years as they include the impact of Project Spring. When considered on a like-for-like basis with previous years (i.e.
excluding the impact of Project Spring) the adjusted cash ow target is £12.3 billion.
In order to participate fully in this award, executives had to co-invest personal shares worth 100% of salary. The resulting awards to Executive
Directors were as follows:
2015 GLTI performance share awards made in June 2014
Number of shares awarded Face value of shares awarded1Proportion of
maximum award
vesting at minimum
performance
Performance
period end
Target
vesting level
(40% of max)
Maximum
vesting level
Target
vesting level
Maximum
vestinglevel
Vittorio Colao 1,340,004 3,350,011 £2,543,328 £6,358,321 1/5th 31 Mar 2017
Stephen Pusey 333,245 833,113 £632,449 £1,581,248 1/5th 31 Mar 2017
Nick Read 717,067 1,792,668 £1,360,993 £3,402,484 1/5th 31 Mar 2017
Note:
1 Face value calculated based on the share prices at the date of grant of 189.8 pence.
Dividend equivalents on the shares that vest are paid in cash after the vesting date.
Overview Strategy review Performance Governance Financials Additional information Vodafone Group Plc
Annual Report 2015
85