Vodafone 2009 Annual Report Download - page 65

Governance
Vodafone Group Plc Annual Report 2009 63
Audited information for executive directors
Remuneration for the year ended 31 March 2009
The remuneration of executive directors receiving remuneration during the year ended 31 March 2009 was as follows:
Incentive Cash in
Salary/fees schemes(1) lieu of pension Benefits/other(2) Total
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Chief Executive
Vittorio Colao 932 830 881 1,291 280 249 171 594 2,264 2,964
Other executive directors
Andy Halford 666 632 650 1,027 167 156 25 31 1,508 1,846
Former Chief Executive
Arun Sarin 436 1,310 434 2,130 – – 553 155 1,423 3,595
Total 2,034 2,772 1,965 4,448 447 405 749 780 5,195 8,405
Notes:
(1) These f igures are th e cash payo ut s from th e 2009 f inancial year Vodafon e Group short ter m ince nti ve plan applica ble to the year ended 31 M arch 20 09. These aw ards are in rel ation to th e per formance
against targets in adjusted operating profit, service revenue, free cash flow, total communications revenue and customer delight for the financial year ended 31 March 2009.
(2) Includes £500,000 in respect of relocation for Arun Sarin (see page 61).
The aggregate remuneration paid by the Company to its collective senior management(1) for services for the year ended 31 March 2009, is set out below. The aggregate
number of senior management at 31 March 2009 was ten, three greater than at 31 March 2008.
2009 2008
£’000 £’000
Salaries and fees 3,896 3,255
Incentive schemes(2) 2,984 4,964
Cash in lieu of pension 399 279
Benefits/other 2,949 1,713
Total 10,228 10,211
Notes:
(1) Aggregate remuneration for senior management is in respect of those individuals who were members of the Executive Committee during the year ended 31 March 2009, other than executive directors,
and reflects compensation paid from either 1 April 2008 or date of appointment to the Executive Committee, to 31 March 2009 or date of leaving, where applicable.
(2) Comprises the incentive scheme information for senior management on an equivalent basis to that disclosed for directors in the table at the top of this page. Details of share incentives awarded to
directors and senior management are included in footnotes to “Long term incentives” on page 65.
Pensions
Arun Sarin was provided with a defined contribution pension arrangement to which the Company contributed 30% of base salary. Vittorio Colao has elected to take a cash
allowance of 30% of base salary in lieu of pension contributions.
Andy Halford is a contributing member of the Vodafone Group Pension Scheme, a UK defined benefit scheme approved by HMRC. The scheme provides a benefit of two-
thirds of pensionable salary after a minimum of 20 years’ service. The normal retirement age is 60 but directors may retire from age 55 with a pension proportionately reduced
to account for their shorter service, but with no actuarial reduction. Andy’s pensionable salary is capped in line with the Vodafone Group pension scheme rules at £110,000.
Andy has elected to take a cash allowance of 30% of base salary in lieu of pension contributions on salary above the scheme cap. Liabilities in respect of the pension schemes
in which the executive directors participate are funded to the extent described in note 26 to the consolidated financial statements.
All the individuals referred to above are provided benefits 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 benefit determined by the insurer, would be provided until normal retirement date.
Pension benefits earned by the directors serving during the year ended 31 March 2009 were:
Transfer value Employer
Change in Change in of change in allocation/
Change in transfer value accrued accrued contribution
Total accrued accrued Transfer Transfer over year less benefit in benefit net of to defined
benefit at 31 benefit over value at 31 value at 31 member excess of member contribution
March 2009(1) the year(1) March 2009(2) March 2008(2) contributions inflation contributions plans(3)
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Vittorio Colao – – – – – – – –
Andy Halford 24.3 3.7 543.6 316.4 223.4 2.6 55.1 –
Arun Sarin – – – – – – – 131
Notes:
(1) The accrued pension benefits earned by the directors are those which would be paid annually on retirement, based on service to the end of the year, at the normal retirement age. The increase in
accrued pension excludes any increase for inflation.
(2 ) The tr ansfer valu es have been ca lcul ated on the basis of actuar ia l adv ice in accordance with the Facult y and Ins ti tute of Actuaries’ G uid ance Note GN11. No di rec tor ele cted to pay additional voluntary
contributions. The transfer values disclosed above do not represent a sum paid or payable to the individual director. Instead they represent a potential liability of the pension scheme.
(3) Arun Sarin’s pension contributions were accrued in an unfunded defined contribution arrangement. This gives rise to a liability held on the consolidated balance sheet.
In respect of senior management, the Group has made aggregate contributions of £581,000 into defined contribution pension schemes and had a total service cost of
£389,000 for defined pension liabilities.