Vodafone’s remuneration package is still facing opposition from a shareholder group, despite the company’s attempts to come up with a policy to suit all parties. The conflict began after the mobile phone operator announced record losses for fiscal year 2002.
Despite this poor performance, the management of the loss-making firm were offered generous pay packets that included large amount of stock options. Company CEO Christopher Gent was paid GBP11.9 million, much more than the average CEO in the UK. This prompted shareholders to call for a revision of the company’s remuneration policy, arguing that it should be more performance related.
The new policy has taken this consideration and now share options will be offered when annual growth in earnings per share is equal to the UK’s retail price index growth plus 5%. A shareholder group are still unhappy and are encouraging others to vote against the new policy. The vote will take place on July 31.