102 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Letter from the Remuneration Committee Chair continued
Remuneration arrangements for 2027 Alignment with our culture and people strategy To deliver our growth strategy it is important that we attract and retain highly skilled talent at a leadership level. To enable this, it is critical our reward packages remain competitive in the talent markets we operate in. With this in mind we reviewed the remuneration of our Executive Directors against our peers in the FTSE 30 and the telco industry and agreed to a 3.0% increase to the Group Chief Executive’s base salary. R ead more about the 2026 base salary arrangements on page 118 of this Annual Report When reviewing the base salary of our Executive Directors, we continue to align the level of increase to the wider workforce in the UK, in keeping with our fair pay philosophy. More broadly, we also continue to engage with colleagues on pay through a variety of different channels, such as our annual employee survey, known as ‘Spirit Beat’, where we ask employees if they feel fairly compensated for the work they do. Our workforce engagement leads also attend employee forums in Europe and Africa to understand employee views on a range of topics, and this years’ topics included talent attraction, wellbeing, customer experience and workplace transformation. R ead more about our culture and people strategy on page 38 of this Annual Report Board changes Luka Mucic stepped down from the Board as the Group Chief Financial Officer on 30 November 2025. Pilar López became our new Group Chief Financial Officer and was appointed to the Board on 1 December 2025. Her remuneration package aligns with our current Remuneration Policy and is summarised in the table on the right. Base salary Following the 2026 salary review, the Committee agreed the following decisions for the Executive Directors: – Group Chief Executive (Margherita Della Valle): £1,332,565 (3.0% increase)
– Group Chief Financial Officer (Pilar López): £725,000 (no change) Annual bonus (‘GSTIP’) During the year the Committee determined that measures and weightings under the 2027 annual bonus will remain the same as for 2026 on the basis they continue to support our Company strategy. The measures under the annual bonus plan are as follows: – Growth (70%): service revenue (20%), adjusted EBIT (20%), adjusted free cash flow (20%) and revenue market share (10%). – Customers (30%): net promoter score (20%) and churn (10%). Read more on page 119 Long-term incentive (‘LTI’) The Committee approved the adjusted structure of the GLTI, set out on page 101. The award will be measured against 90% adjusted FCF and 10% ESG. Subject to approval of our proposed 2026 Directors’ Remuneration Policy, Executive Directors will receive a 2027 MVSO award, which will be equivalent to 30% of their maximum LTI opportunity. Read more on page 119 Looking ahead The rest of this report sets out both our proposed 2026 Directors’ Remuneration Policy which will be shared for approval at the 2026 AGM, and our Annual Report on Remuneration, which details all the remuneration arrangements for this year as well as providing details on incentive outcomes. Following the conclusion of the 2026 AGM I will be stepping down as Chair of the Remuneration Committee. Christine Ramon will be appointed as Chair of the Committee with effect from the same date. Amparo Moraleda On behalf of the Remuneration Committee 19 May 2026
Remuneration at a glance Component
2026 (year ending 31 March 2026)
Fixed pay Base salary
Effective 1 July 2025: Group Chief Executive: £1,293,750 (3.5% increase). Effective 1 December 2025: Group Chief Financial Officer: £725,000 (following appointment). Travel-related benefits and private medical cover.
Benefits Pension
Pension contribution of 10% of salary.
Annual bonus GSTIP
Opportunity (% of salary): Target: 100%/Maximum: 200% Measures: Service revenue (20%), adjusted EBIT (20%), adjusted FCF (20%), RMS (10%), NPS (20%) and churn (10%).
Long-term incentive GLTI
Opportunity (% of salary – maximum): Chief Executive: 500%/Other Executive Directors: 450% Measures: Adjusted FCF (60%), relative TSR (30%), and ESG (10%). Performance/holding periods: Three-year performance + two-year holding period.
Executive Directors’ 2026 pay outcomes £’000
£0
£2,000
£4,000
£6,000 7,004
£8,000
£10,000
£12,000
CEO
1,460
1,668
10,132
£0
£500
£1,000
£1,500
£2,000
CFO
328
311
170
809
Fixed Remuneration
Annual Bonus: GSTIP
Long-term Incentive
Other
Notes: 1. Fixed remuneration consists of salary, taxable benefits, and pension/cash in lieu of pension. 2. Further information on the total remuneration of Executive Directors for the 2026 Financial Year can be found on page 110 . The pay outcomes for the Group Chief Financial Officer is based on the incumbent’s respective time as Board member since joining Vodafone.
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