Vodafone 2015 Annual Report Download - page 86

Annual Report on remuneration (continued)
2015 remuneration
In this section we summarise the pay packages awarded to our Executive Directors for performance in the 2015 nancial year versus 2014.
Specically we have provided a table that shows all remuneration that was earned by each individual during the year and computed a single total
remuneration gure for the year. The value of the annual bonus (‘GSTIP’) was earned during the year but will be paid out in cash in the following year
and the value of the long-term incentive (‘GLTI’) shows the share awards which will vest in July 2015 as a result of the performance through the three
year period ended at the completion of our nancial year on 31 March 2015.
The Remuneration Committee reviews all incentive awards prior to payment and uses judgement to ensure that the nal assessments
of performance are fair and appropriate. If circumstances warrant it, the Committee may adjust the nal payment or vesting downwards. On this
occasion, the Committee did not exercise its judgement considering the annual bonus (‘GSTIP’) payout and the nal vesting level of the long-term
incentives awards (‘GLTI’) reected performance and were considered fair and appropriate.
Total remuneration for the 2015 nancial year (audited)
Vittorio Colao Stephen Pusey Nick Read1
2015
£’000
2014
£’000
2015
£’000
2014
£’000
2015
£’000
2014
£’000
Salary/fees 1,140 1,110 594 575 675 –
Taxable benets240 38 21 21 28 –
Annual bonus: GSTIP (see below for further detail) 1,287 982 671 509 755 –
Total long-term incentive: –5,550 –1,858 – –
GLTI vesting during the year3 –4,716 –1,579 – –
Cash in lieu of GLTI dividends4–834 –279 – –
Cash in lieu of pension 342 333 178 173 203 –
Other51 1 – – 1–
Total 2,810 8,014 1,464 3,136 1,662 –
Notes:
1 Nick Read was appointed to the Board on 1 April 2014.
2 Taxable benets include amounts in respect of: – Private healthcare (2015: £1,854; 2014 £1,734);
– Cash car allowance £19,200 p.a.; and
– Travel (2015: Vittorio Colao £18,022; Nick Read £7,164; 2014: Vittorio Colao £17,155).
3 The value shown in the 2014 column is the award which vested on 28 June 2014 and is valued using the execution share price on 30 June 2014 of 196.19 pence. Please note that the values
disclosed in this table in 2014 are slightly different as the value was based on an average of the closing share price over the last quarter of the 2014 nancial year of 234.23 pence.
4 Participants also receive a cash award, equivalent in value to the dividends that would have been paid during the vesting period on any shares that vest. The cash in lieu of dividend value
shown in 2014 relates to the award which vested on 28 June 2014.
5 Reects the value of the SAYE benet which is calculated as £250 x 12 months x 20% to reect the discount applied based on savings made during the year.
2015 annual bonus (‘GSTIP’) payout (audited)
In the table below we disclose our achievement against each of the performance measures and targets in our annual bonus (‘GSTIP’) and the
resulting total annual bonus payout level for the year ended 31 March 2015 of 111.9%. This is applied to the target bonus level of 100% of base salary
for each executive.
Performance measure
Payout at
target
performance
100%
Payout at
maximum
performance
200%
Actual
payout
%
Target
performance
level
£bn
Actual
performance
level1
£bn Commentary
Service revenue 25% 50% 23.5% 39.0 38.9 Actual performance slightly below budget
EBITDA 25% 50% 29.7% 11.8 12.0 Above budgeted performance in Europe
Adjusted free cash ow 25% 50% 38.5% 0.9 1.3 Strong performance in both regions
Competitive performance assessment,
driven particularly by Net Promoter
Score and relative market share
25% 50% 20.2% Compilation of
market-by-market
assessment
Net Promoter Score now ranks rst in 11
markets, however there remains scope for
improvement in Europe
Total annual bonus payout level 100% 200% 111.9%
Note:
1 These gures are adjusted to include the removal of the impact of M&A, foreign exchange movements and any changes in accounting treatment.
2015 annual bonus (‘GSTIP’) amounts
Base salary
£’000
Target bonus
% of base salary
2015 payout
% of target
Actual payment
£’000
Vittorio Colao 1,150 100% 111.9% 1,287
Stephen Pusey 600 100% 111.9% 671
Nick Read 675 100% 111.9% 755
Vodafone Group Plc
Annual Report 2015
84
Directors’ remuneration (continued)