Vodafone 2016 Annual Report Download - page 59

Directors’ remuneration
Dear shareholder
On behalf of the Board, I present our 2016 Directors’ Remuneration
Report – my rst as Chairman of the Remuneration Committee.
This report sets out both our policy, as approved by shareholders at the
2014 annual general meeting, and how this policy was implemented
during 2016.
Last year’s report received a vote in favour from shareholders of over
97% – indicating support for the Committee’s focus on implementing
the key principles of our executive remuneration approach.
The Committee remains committed to ensuring that all of our decisions
are guided by the principles of:
a offering competitive and fair rates of pay and benets;
a ensuring our remuneration policy, and the manner in which
it is implemented, drives the behaviours that support our strategy and
business objectives;
a maintaining a “pay for performance” approach to remuneration
which ensures our incentive plans only deliver signicant rewards
if and when they are justied by business performance; and
a aligning the interests of our senior management team with those
of shareholders by developing an approach to share ownership that
helps to maintain commitment over the long term.
Project Spring during 2016
The year under review saw operational progress made under Project
Spring. In AMAP this was reected through continued customer and
data growth whilst in Europe our progress was evident in the fact that
c.70% of our markets returned to service revenue growth.
Our improved nancial performance was complemented by signicant
steps being made in the “Customer eXperience eXcellence” phase
of Project Spring. This saw us increase the number of markets where
we are Consumer NPS leader by 2, to 13 out of 21.
In addition to the above, the combined impact of these results has led
to a number of notable achievements this year, including:
a doubling the number of our 4G customers to 47m;
a increasing our xed broadband base to 13.4m (an increase of 1.3m);
a returning to full year growth in both EBITDA and service revenue;
a strong enterprise performance; and
a meeting targets in Europe for dropped call rates of less than 0.5%
and for data sessions above three megabits per second of above 90%.
Letter from the Remuneration
Committee Chairman
Contents of the Remuneration Report
Remuneration policy
The remuneration policy table
Chairman and Non-Executive Directors’ remuneration
Page 59
Page 60
Page 64
Annual Report on remuneration
Remuneration Committee
2016 remuneration
2017 remuneration
Further remuneration information
Page 65
Page 65
Page 66
Page 72
Page 73
Key objective:
To assess and make recommendations to the Board on the policies
for executive remuneration and reward packages for the individual
Executive Directors.
Responsibilities:
a determining, on behalf of the Board, the policy on the
remuneration of the Chairman of the Board, the Executive
Directors and the senior management team;
a determining the total remuneration packages for these individuals
including any compensation on termination of ofce;
a operating within recognised principles of good governance; and
a preparing an Annual Report on Directors’ remuneration.
Remuneration
Committee
During the year the Committee has continued
to ensure its work supports our long-term strategic
goals and that remuneration levels fairly reect
ongoing performance in the context of wider market
conditions and shareholder views.
Chairman
Valerie Gooding
Independent Non-Executive Director
Overview Strategy review Performance Governance Financials Additional information
Vodafone Group Plc
Annual Report 2016
57