113 Vodafone Group Plc Annual Report 2024
Strategic report
Governance
Financials
Other information
Executive Directors Executive Committee Senior Leadership Team
Wider workforce
Base salary
An annual benchmarking review is run across all levels of the organisation. At each level the review ensures appropriate job matches and comparator groups are used, with external market data used to help inform line manager decisions on salary increases. Our annual fair pay review (see below for further details) provides a robust process for ensuring new pay range positionings are fair across our organisation. Pension provision across all levels is driven by local market practice. As per our fair pay principles (see below), our global standard ensures all of our people have access to appropriate state- or company-provided pension provision. Benefit provision across all levels is driven by local market practice. As per our fair pay principles, our global standard is to offer all our people life insurance, parental leave and access to either state- or company-provided healthcare provision.
Pension
Benefits
Spot cash recognition Short-term incentive
Not applicable.
Certain employees are eligible to receive in-the-moment cash recognition for great performance throughout the year. Employees are eligible to participate in either the short-term incentive (with business and personal performance elements) or a commission scheme. Subject to position, managers are eligible to participate in a long-term incentive award of restricted stock.
Eligible to participate (see page 99) with outcomes based on business performance.
Eligible to participate with outcomes based on business and individual performance.
The short-term Incentive performance measures are consistent across all levels of participants.
Long-term incentive
Eligible to participate (see page 99). This is 100% based on performance with a three-year performance period and addition two-year holding period.
Eligible to participate in the long-term incentive, constituting part performance and part retention. Fixed number of shares set upon appointment.
Share ownership (% of salary)
CEO: 500% Other: 400%
300%
Not applicable.
Recognising performance and potential To ensure we recognise and differentiate the reward of our employees, the total value of an employee’s short-term and, if relevant, long-term incentive is driven by their impact and talent rating. To be eligible for a short-term incentive award, employees must meet minimum performance standards, which include completion of our mandatory compliance training. Fair pay at Vodafone In addition to being a core principle of the Committee, there is a clear culture in our business of ensuring we offer competitive and fair pay to all our people. Our approach across our business is guided by the six principles set out below. Our commitment to these principles is reflected in how the UK-based Living Wage Foundation has certified us as an Accredited Living Wage employer. 1. Market competitive 2. Free from discrimination 3. Ensure a good standard of living
We work with an independent organisation, WageIndicator Foundation, to assess how our pay compares to the ‘living wage’ in each of our markets because we are committed to providing a good standard of living for our people and their families.
Our pay should not be affected by gender, age, disability, gender identity and expression, sexual orientation, race, ethnicity, cultural heritage or belief. We annually compare the average position of our men and women against their market benchmark, grade and function to identify and understand any differences and take action if necessary.
The pay of our people is reflective of their skills, role and function and the external market. We annually review the pay of each person and actively manage any who fall below the market competitive range.
4. Share in our successes
5. Provide benefits for all
6. Open and transparent
We ensure that our people understand their pay. We do this through a series of user-friendly guides, webpages and an annual reward statement, which help explain our people’s pay and outline the value of their core reward package.
Our global standard is to offer all our people life insurance, parental leave and access to either Company or state provided healthcare and pension provision.
All our people should have the opportunity to share in our success by being eligible to receive some form of performance-related pay, e.g. a bonus, shares or sales incentive.
Click to read more about fair pay at Vodafone: vodafone.com/fair-pay
Cost of living actions Rising inflation levels and the subsequent cost of living crisis continue to affect a number of employees in our markets. As a result, we continue to provide targeted measures which include the delivery of additional or accelerated salary reviews and the provision of extra cash allowances outside the annual reward review cycle. Given the rapid inflationary change affecting those in Egypt, a supplementary Cost of Living Allowance (‘COLA’) was introduced, prior to two off-cycle increases implemented during the year. In Turkey, where they are experiencing hyper-inflation, we took a similar approach by accelerating our salary reviews and providing two additional off-cycle increases.
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