Vodafone 2016 Annual Report Download - page 69

2016 annual bonus (‘GSTIP’) amounts
Base salary
£’000
Target bonus
% of base salary
2016 payout
% of target
Actual payment
£’000
Vittorio Colao 1,150 100% 116.7% 1,342
Stephen Pusey1600 100% 116.7% 233
Nick Read 700 100% 116.7% 817
Note:
1 The actual payment gure for Stephen Pusey reects the pro-rated amount paid in respect of time served.
Long-term incentive (‘GLTI’) award vesting in June 2016 (audited)
The 2014 long-term incentive (‘GLTI’) awards which were made in June 2013 will partially vest in June 2016. The performance conditions for the
three year period ending in the 2016 nancial year are as follows:
TSR outperformance
Adjusted free cash ow measure £bn
0.0%
(Up to median)
4.5%
(65th percentile equivalent)
9.0%
(80th percentile equivalent)
Below threshold <12.4 0% 0% 0%
Threshold 12.4 50% 75% 100%
Target 14.4 100% 150% 200%
Maximum 16.4 150% 225% 300%
TSR peer group
AT&T Orange
BT Group Telecom Italia
Deutsche Telekom Telefónica
Emerging markets composite
The adjusted free cash ow for the three year period ended on 31 March
2016, having removed the impact of the investment made under
Project Spring as set out in our 2014 Annual Remuneration Report,
was £13.1 billion. This compares with a threshold of £12.4 billion and
atarget of £14.4 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 0.4% a year.
Using the combined payout matrix above, this performance resulted
in a payout of 69.6% 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)
180
170
150
160
130
140
120
110
100
90 03/13 09/13 03/14 09/14 03/15 09/15 03/16
Vodafone Group Median of peer group Outperformance of median of 9% p.a.
100
130
117
107
103
121
154
137
138
150
139
129
150
175
145 137
171
135
149
2014 GLTI performance share awards vesting in June 2016
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 4,185,370 1,395,123 66.6% 1.05 times 69.6% 970,586 £2,102
Stephen Pusey11,904,846 634,948 66.6% 1.05 times 69.6% 301,272 £653
Nick Read 1,713,392 571,130 66.6% 1.05 times 69.6% 397,335 £861
Note:
1 The number and value of shares vesting for Stephen Pusey reect the pro-rated amount paid in respect of time served.
These share awards will vest on 26 June 2016. 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 Willis Towers Watson. Details of how the plan works can be found on pages 60 to 62.
Long-term incentive (‘GLTI’) awarded during the year (audited)
The performance conditions for the 2016 long-term incentive awards made in June 2015 and September 2015 are a combination of adjusted free
cash ow and TSR performance as follows:
TSR outperformance
Adjusted free cash ow measure £bn
0.0%
(Up to median)
4.5%
(65th percentile equivalent)
9.0%
(80th percentile equivalent)
Below threshold <7.3 0% 0% 0%
Threshold 7.3 50% 75% 100%
Target 9.0 100% 150% 200%
Maximum 10.7 125% 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 conditional shares granted.
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Vodafone Group Plc
Annual Report 2016
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