Remuneration Policy continued 104 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Remuneration Policy table Each component of our reward packages looks to achieve the objectives of our Remuneration Policy, and is outlined in the tables below. Fixed pay: Base salary Objective – Attract and retain critical talent. Operation Salaries are usually reviewed annually and fixed for 12 months commencing 1 July. Decisions are primarily influenced by: – individual’s level of skill and experience and the position’s scope of responsibilities; – business performance, scarcity of talent, economic climate and market conditions; – increases elsewhere within the Group; and – external comparator groups (which are used for reference purposes only) made up of companies of similar size, complexity, and geographies to Vodafone. Opportunity Average salary increases for existing Executive Committee members (including Executive
Opportunity – Benefits will be provided in line with appropriate levels indicated by local market practice in the country of employment, though no monetary maximum has been set.
– We expect to maintain benefits at the current level but the value of any benefit may fluctuate depending on, amongst other things, personal situation, insurance premiums and other external factors.
Performance metrics None. Annual bonus – Global Short-Term Incentive Plan (‘GSTIP’) Objectives
– Attract and retain critical talent. – Incentivise delivery of our strategy. – Operate simple pay structures.
Operation
– Bonus levels and the appropriateness of measures and weightings are reviewed annually to ensure they continue to support our strategy. – The annual bonus is usually paid in cash in June each year for performance over the previous year. A mandatory deferral of 25% of post-tax bonus earned into shares for two years will normally apply except where an Executive Director has met or exceeded their share ownership requirement. – The Remuneration Committee retains the discretion to adjust the size of the bonus based on the achievement of the relevant performance conditions to reflect the Company’s and the Executive Director’s underlying performance and any other factors the Remuneration Committee considers appropriate.
Directors) will not normally exceed average increases for employees in other appropriate parts of the Group. Increases above this level may be made in specific situations. These situations could include (but are not limited to) internal promotions, changes to role, retention risks, material changes to the business and exceptional Company performance.
Performance metrics
None.
Fixed pay: Pension Objective
– Attract and retain critical talent.
Opportunity – Bonuses can range from 0 to 200% of base salary, with 100% paid for on-target performance. Performance metrics – Performance over each financial year is measured against stretching financial and non-financial performance targets set at the start of the financial year. – The performance measures normally comprise a mix of financial and strategic measures. Financial measures may include (but are not limited to) profit, revenue and cash flow 1 with a weighting of no less than 50%. Strategic measures may include (but are not limited to) customer KPIs such as churn, revenue market share, and NPS. – The financial metrics drive our growth strategies whilst also focusing on improving operating efficiencies. – The strategic metrics aim to ensure a great customer experience remains at the heart of what we do. Short-term incentive note: 1. Cash flow may be included as performance metric for GSTIP and GLTI as this is a crucial metric for the Company. The Remuneration Committee believe setting both short-term and long-term cash flow targets is appropriate. Including this measure within the GSTIP ensures that all employees are measured against this metric, it’s important to note that for employees below the top tiers of management that are not on a commission plan, the GSTIP is the only variable pay they would receive.
Operation – Executive Directors may choose to participate in the defined contribution pension scheme or to receive a cash allowance in lieu of pension. Opportunity – The pension contribution or cash payment is equal to the maximum employer contribution available to our UK employees under our Defined Contribution scheme (currently 10% of annual gross salary). Performance metrics None. Fixed pay: Benefits Objective – Attract and retain critical talent. Operation – Travel-related benefits. These may include (but are not limited to) a company car or cash allowance, fuel and access to a driver where appropriate. – Private medical, death and disability insurance and annual health checks for the Executive Directors and their families. – In the event that we ask an individual to relocate we would offer them support in line with Vodafone’s relocation and international assignment policies. This may cover (but is not limited to) relocation, cost of living allowance, housing, home leave, education support, tax equalisation, and tax and legal support. – Other benefits are also offered in line with the benefits offered to other employees, for example, our UK employee share plan, mobile phone discounts, maternity/paternity benefits, sick leave, paid holiday etc.
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