102 Vodafone Group Plc Annual Report 2025 Annual Report on Remuneration continued
Strategic report
Governance
Financials
Other information
In keeping with our fair pay principle of ensuring reward decisions are free from discrimination, each year we publish our UK gender pay gap in line with the statutory UK requirements. Our 2024 report also marked the first year in which we voluntarily reported our ethnicity pay gap for UK employees in our local market and Group entity. Details of our pay gap disclosure can be found in our report linked below. Click to learn more about our initiatives, case studies, and key statistics on our dedicated UK pay gap webpage: vodafone.com/uk-pay-gap We are proud of the policies that we have put in place to support our employees and we remain committed to addressing all forms of representation at all levels. Risk management The Committee undertakes an annual review of the potential risks within our incentive plans and what steps have been taken to mitigate these. The review looks at both the structure of our incentives and the performance conditions used. Given our current structure and performance metrics, the 2025 review focused on risk areas such as capital expenditure and alignment between management and stakeholders. Stakeholder engagement The Committee considers all stakeholder groups when setting executive pay including: Employees The Committee is fully briefed on pay arrangements across the business to ensure any decisions on executive pay are made within our wider business context and take into account wider employee pay conditions. We engage with our employees through a variety of means including employee forums, interactive webinars with our executives, global Spirit Beat surveys, and digital platforms, all of which give our people the chance to voice their opinion on any area of interest, including all-employee and executive pay. Customers The importance of customers to our strategy is reflected in how our annual bonus plan includes the customer-focused measures of revenue market share, NPS, and churn. Shareholders The Committee values the active participation of our shareholders during our consultations and fully considers all feedback as part of the review process. Government The Committee actively engages with external professional bodies and government departments when they issue consultations on proposed changes to legislation or reporting guidelines. Wider society The Committee is fully aware that society remains concerned about the risk of excessive executive pay practices in the wider market. The Committee believes that transparent reporting and active engagement in explaining both the operation of, and rationale for, executive pay decisions is key for businesses to retain trust in this area. Relative spend on pay The chart below shows both the dividends distributed in the year and the total cost of remuneration in the Group.
CEO pay ratio The following table sets out our CEO pay ratio figures: Year CEO single figure (£’000)
Method 25th percentile pay ratio
Median pay ratio 75th percentile pay ratio
2025 2024 2023 2 2022 2021 2020 2019 4
4,564 4,395 1 4,394 4,173 3,551 3,529 4,359
Option B Option B Option B Option B Option B Option B Option B
97:1 106:1 127:1 113:1 106:1 113.1 154:1
60:1 69:1 62:1 73:1 87:1 69.1 107:1
50:1 50:1 47:1 3 48:1 42:1 45.1 56:1
Notes: 1. The CEO single figure for 2024 has been updated to reflect the final vest price under the GLTI confirmed after the 2024 Annual Report on Remuneration was published. 2. The CEO single figure used in the calculation of the 2023 ratios reflects a blended figure for Nick Read and Margherita Della Valle, recognising the change in incumbency for the role during this year. 3. The 2023 75th percentile pay ratio is restated from that which was reported in the 2024 Annual Report on Remuneration. 4. The CEO single figure used in the calculation of the 2019 ratios reflects a blended figure for Vittorio Colao and Nick Read, recognising the change in incumbency for the role during this year. The pay ratio figures in the above table are calculated using the following total pay and benefits information: Year Supporting information 25th percentile pay ratio (£’000) Median pay ratio (£’000) 75th percentile pay ratio (£’000) 2025 Salary 40.5 67.1 76.3 Total pay and benefits 47.0 75.7 90.5 2024 Salary 35.9 54.6 72.8 Total pay and benefits 41.3 63.7 88.5 2023 Salary 26.5 56.1 75.6 Total pay and benefits 34.6 70.5 92.8 2022 Salary 31.7 47.1 71.5 Total pay and benefits 36.9 57.5 87.2 2021 Salary 30.0 37.1 71.2 Total pay and benefits 33.5 41.0 85.3 2020 Salary 28.0 42.8 65.0 Total pay and benefits 31.3 51.1 78.6 2019 Salary 23.1 36.4 65.0 Total pay and benefits 28.3 40.8 78.2 The calculation methodology used reflects Option B as defined under the relevant regulations. In line with the relevant regulations this utilises the most recently collected and disclosed data analysed within our Gender Pay Gap report, with employees at the three quartiles identified from this analysis and their respective single figure values calculated. To ensure this data accurately reflects individuals at such quartiles, the single figure values for individuals immediately above and below the identified employee at each quartile within the gender pay gap analysis were also reviewed. For 2025, CEO pay ratio when compared to the lower quartile and median in 2024 has decreased. The reduction in the ratio is driven by a relatively lower GSTIP and GLTI outcome for 2025 compared to 2024, given that variable pay forms a more significant proportion of the CEOs package compared to other employees.
€m
Distributed by way of dividends
Overall expenditure on remuneration for all employees
2025 2024
1,797
5,522
2,433
6,246
Further details of the above chart can be found in notes 9 and 24 of the consolidated financial statements.
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