Vodafone 2000 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2000 Vodafone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

Vodafone AirTouch Plc Annual Report & Accounts for the year ended 31 March 2000 51
27 Directors
Aggregate emoluments of the directors of the Company were as follows:
2000 1999
£000 £000
Salaries and fees 3,422 2,444
Bonuses 695 –
Incentive schemes 2,468 514
Benefits 174 137
–––––––– ––––––––
6,759 3,095
–––––––– ––––––––
Aggregate gains on the exercise of share options were £93,910,000 (1999 – £6,963,000).
More detailed information concerning directors’ emoluments, shareholdings and options is shown in the Remuneration Report of the Board
on pages 20 to 26.
28 Employees
The average number of persons employed 2000 1999
by the Group during the year was: Number Number
Operations 9,058 3,675
Selling and distribution 5,484 2,871
Administration 14,923 6,096
–––––––– ––––––––
29,465 12,642
–––––––– ––––––––
The cost incurred in respect of these 2000 1999
employees (including directors) was: £m £m
Wages and salaries 774 314
Social security costs 65 20
Other pension costs 42 18
–––––––– ––––––––
881 352
–––––––– ––––––––
29 Pensions
The Group operates a number of pension plans for the benefit of its employees throughout the world. For UK employees the plans are
generally funded defined benefit schemes, the assets of which are held in separate trustee administered funds. For international employees
the schemes are generally defined contribution schemes.
UK defined benefit schemes
The schemes are subject to triennial valuations by independent actuaries. The last formal valuations of the three main UK schemes were
carried out as at 1 April 1998 using the projected unit funding method of valuation in which allowance is made for projected earnings
growth. The triennial formal valuations are supplemented by annual reviews by independent actuaries.
At 1 April 1998, the market value of the three principal schemes was £98m and their actuarial value was sufficient to cover 87.6% of the
benefits accrued to members calculated on an ongoing basis, and 99.4% of accrued benefits based on the Minimum Funding Requirement
basis. The deficiency is being dealt with by payment of contributions at the rate advised by the actuary.
The main assumptions used in the last valuations were that the average long term rate of return earned by the scheme assets would be
8.5% and that this will exceed the general rate of salary growth by between 0.5% and 1.5% p.a., and that equity dividend growth would be
4.5% p.a.
The pension cost for the year amounted to £17m (1999 – £13m).
A net prepayment of £17m (1999 – £13m) is included in debtors due after more than one year. This represents the excess of the amounts
funded over accumulated pension costs.
Defined contribution schemes
The pension cost for the year was £25m (1999 – £5m). The increase this year is primarily in respect of contributions charged in relation to
the AirTouch defined contribution plan.
Notes to the Consolidated Financial Statements continued