Vodafone CEO Sir Christopher Gent was paid $3.58 million for the fiscal year 2001/02, and given just under 530,000 shares as well as options for another 8.95 million. Many of the telecom giant’s shareholders have been critical of the decision, given that the company made record losses.
Of the money Sir Christopher received, $1.18 million was awarded as a bonus. Other heads of lossmaking telcos have turned down bonuses: Deutsche Telekom CEO Ron Sommer, along with other board members, has rejected stock options.
The shareholders are requesting a revised pay policy and clearer guidelines, since the amount paid to Sir Christopher was somewhat above average. Vodafone has now agreed that a revision is in order, saying that in future 80% of the pay will be performance related.
Vodafone will finalize the deal at some point in the future, following comparisons with other operators and companies.