Vodafone 2016 Annual Report Download - page 70

Annual Report on remuneration (continued)
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:
2016 GLTI performance share awards made in June 2015 and September 2015
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 1,215,662 3,039,156 £2,731,579 £6,828,949 1⁄5th 31 Mar 2018
Nick Read 635,986 1,589,967 £1,417,652 £3,544,135 1⁄5th 31 Mar 2018
Note:
1 Face value calculated based on target awards of 137.5 % of salary for Vittorio Colao and 110% of salary for Nick Read made in June 2015 using a share price for the awards of 239.4 pence
and, following co-investment at the end of the close period, target awards of 100% of salary in September 2015 for both Executive Directors, using a share price for the awards of 207.2 pence
(i.e.closing share price for the day prior to each grant).
Dividend equivalents on the shares that vest are paid in cash after the vesting date.
All-employee share plans
The Executive Directors are also eligible to participate in the UK all-employee plans.
Summary of plans
Sharesave
The Vodafone Group 2008 Sharesave Plan is an HM Revenue & Customs (‘HMRC’) approved scheme open to all staff permanently employed by
aVodafone Company in the UK as of the eligibility date. Options under the plan are granted at up to a 20% discount to market value. Executive
Directors’ participation is included in the option table on page 69.
Share Incentive Plan
The Vodafone Share Incentive Plan (‘SIP’) is an HMRC approved plan open toall staff permanently employed by a Vodafone Company in the UK.
Participants may contribute up to a maximum of £125 per month (or5%of salary if less) which the trustee of the plan uses to buy shares on their
behalf. An equivalent number of shares are purchased with contributions from the employing company. UK-based Executive Directors are eligible
toparticipate.
Pensions (audited)
The Executive Directors received a cash allowance of 30% of base salary in lieu of pension contributions until 31 October 2015. From 1 November
2015, cash allowance in lieu of pension contributions for Vittorio Colao and Nick Read were reduced to 24% of base salary. No Executive
Directors accrued benets under any dened contribution pension plans during the year or have participated in a dened benets scheme while
an Executive Director.
The Executive Directors are provided benets in the event of death in service. They also have an entitlement under a long-term disability plan
from which two-thirds of base salary, up to a maximum benet determined by the insurer, would be provided until normal retirement date
(aged 60). In respect of the Executive Committee members, the Group has made aggregate contributions of £130,806 (2015: £43,000) into dened
contribution pension schemes.
Alignment to shareholder interests (audited)
All of our Executive Directors have shareholdings in excess of their goals. Current levels of ownership by the Executive Directors, and the date
by which the goal should be or should have been achieved, are shown below. The values are calculated using an average share price over the six
months to 31 March 2016 of 216.09 pence.
At 31 March 2016
Goal as a %
of salary
Current %
of salary held
% of goal
achieved
Number
of shares
Value of
shareholding
Date for goal
to be achieved
Vittorio Colao 400% 2,049% 512% 10,906,223 £23.6m July 2012
Stephen Pusey (position at retirement) 300% 569% 190% 1,579,543 £3.4m June 2014
Nick Read 300% 644% 215% 2,086,257 £4.5m April 2019
Collectively the Executive Committee including the Executive Directorsown more than 24 million Vodafone shares, with a value of over
£52.3 million. None of the Executive Committee members’ shareholdings amounts to more than 1% of the issued shares in that class of share,
excluding treasury shares.
Directors’ interests in the shares of the Company (audited)
A summary of interests in shares and scheme interests of the Directors who served during the year is given below. More details of the performance
shares and options follows.
At 31 March 2016
Share plans Share options
Total number
of interests in shares
Unvested GLTI shares
(with performance
conditions)
SAYE
(unvested without
performance
conditions)
GIP
(vested)
Executive Directors
Vittorio Colao 21,490,367 10,574,537 9,607 –
Stephen Pusey (position at retirement) 4,317,502 2,737,959 – –
Nick Read 8,120,116 5,096,027 10,389 927,443
Total 33,927,985 18,408,523 19,996 927,443
The total number of interests in shares includes interests of connected persons, unvested share awards and share options.
Directors’ remuneration (continued)
Vodafone Group Plc
Annual Report 2016
68