Colao and good pay

25 July 2012 By Quentin Webb

Britain’s “shareholder spring” shouldn’t cow bosses too much. Investors remain relaxed about executives getting filthy rich – provided companies perform, of course. Look at the huge support for Vodafone, the telco whose CEO will make more than 500 times the average UK wage this year.

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On July 24, Vodafone Group Plc said more than 96 percent of investors who had voted at its annual general meeting had approved the company’s latest remuneration report. Vittorio Colao, chief executive, stands to receive a total of about 14 million pounds this year, including 10.99 million pounds under a share-based “long-term incentive” scheme that vested in June.
The company’s annual report says it is “mindful of the wider economic conditions and shareholder feedback” in taking pay decisions, and says it will continue to set “stretching performance targets”. This year it has frozen pay for executive directors and cut maximum possible payments on future long-term incentive awards.

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