Vodafone 2016 Annual Report Download - page 65

Estimates of total future potential remuneration from 2015 pay packages
The tables below provide estimates of the potential future remuneration for each of the Executive Directors based on the remuneration
opportunity granted in the 2015 nancial year and therefore do not reect the latest remuneration information. Potential outcomes based
on different performance scenarios are provided for each Executive Director.
The assumptions underlying each scenario are described below.
Fixed Consists of base salary, benets and pension.
Base salary is at 1 July 2014.
Benets are valued using the gures in the total remuneration for the 2014 nancial year table on page 78 (of the 2014 report)
and on a similar basis for Nick Read (promoted to the Board on 1 April 2014).
Pensions are valued by applying cash allowance rate of 30% of base salary at 1 July 2014.
Base
(£’000)
Benets
(£’000)
Pension
(£’000)
Total xed
(£’000)
Chief Executive 1,150 38 345 1,533
Chief Financial Ofcer 675 23 203 901
Chief Technology Ofcer 600 21 180 801
On target Based on what a Director would receive if performance was in line with plan.
The target award opportunity for the annual bonus (‘GSTIP’) is 100% of base salary.
The target award opportunity for the long-term incentive (‘GLTI’) is 237.5% of base salary for the Chief Executive and 210% for
others. Weassumed that TSR performance was at median.
Maximum Two times the target award opportunity is payable under the annual bonus (‘GSTIP’).
The maximum levels of performance for the long-term incentive (‘GLTI’) are 250% of target award opportunity. We assumed
that TSR performance was at or above the 80th percentile equivalent.
All scenarios Each executive is assumed to co-invest the maximum allowed under the long-term incentive (‘GLTI’), 100% of salary, and the
long-term incentive (‘GLTI’) award reects this.
Long-term incentives consist of share awards only which are measured at face value i.e. no assumption for increase in share
price or cash dividend equivalents payable.
Vittorio Colao, Chief Executive
10,000
12,000
8,000
6,000
4,000
2,000
0Fixed
£1,533
On target
£5,414
Maximum
£10,661
£’000
28%
21%
14%
22%
64%
51%
¢
Salary and benets ¢ Annual bonus ¢ Long-term incentive
Nick Read, Chief Financial Ofcer (appointed 1 April 2014)
10,000
12,000
8,000
6,000
4,000
2,000
0Fixed On target Maximum
£’000
¢
Salary and benets ¢ Annual bonus ¢ Long-term incentive
£901
£2,994
£5,795
30% 23%
47%
16%
23%
61%
Stephen Pusey, Chief Technology Ofcer
10,000
12,000
8,000
6,000
4,000
2,000
0Fixed On target Maximum
£’000
¢
Salary and benets ¢ Annual bonus ¢ Long-term incentive
£801
£2,661
30% 23% 16%
23%
61%
47%
£5,151
Recruitment remuneration
Our approach to recruitment remuneration is to pay no more than is necessary and appropriate to attract the right talent to the role.
The remuneration policy table (pages 60 and 61) sets out the various components which would be considered for inclusion in the remuneration
package for the appointment of an Executive Director. Any new Director’s remuneration package would include the same elements,
and be subject to the same constraints, as those of the existing Directors performing similar roles. This means a potential maximum bonus
opportunity of 200% of base salary and long-term incentive maximum face value of opportunity at award of 594% of base salary.
When considering the remuneration arrangements of individuals recruited from external roles to the Board, we will take into account the
remuneration package of that individual in their prior role. We only provide additional compensation to individuals for awards foregone. If necessary
we will seek to replicate, as far as practicable, the level and timing of such remuneration, taking into account also any remaining performance
requirements applying to it. This will be achieved by granting awards of cash or shares that vest over a timeframe similar to those forfeited and
if appropriate based on performance conditions. A commensurate reduction in quantum will be applied where it is determined that the new awards
are either not subject to performance conditions or subject to performance conditions that are not as stretching as those of the awards forfeited.
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Vodafone Group Plc
Annual Report 2016
63