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The business performance multiplier ranges from 0% to 200%, and
the personal multiplier from 0% to 150%. The personal performance
multipliers are based on the performance of executives relative to
their objectives. For the CEO, only a business multiplier is applied
and follows the approach adopted by Vodafone for large market
CEOs within the Vodafone Group. The financial and non-financial
targets, as set by the RemCo, are used for the calculation of the
business performance multiplier.
The Group business performance multiplier is used for the CEO
and executive directors. For prescribed officers, the business
performance multiplier is based on a weighted average of the
multipliers for the relevant operating company and the Group.
STI pay-out
In the table below we disclose our achievement against each of
the performance measures for the Group performance multiplier
for the financial year ended 31 March 2016.
Metric
Weight
20%
EBITDA
20%
20%
Operating
free cash flow
40%
Overall result
100%
Customer
appreciation
Service
revenue
Min
Target
Max
174.6%
The comparable performance for the prior financial year that ended
31 March 2015 was 50.9%.
Long-term incentive (LTI)
It is critical for the company to retain skills and to motivate and
incentivise executive directors and other employees over the longer
term. LTIs support the company to meet these objectives, which are
crucial to sustainable performance.
Vodacom Forfeitable Share Plan (FSP)
The FSP was introduced in 2009 and is our main long-term incentive
plan. Although it is focused on executives and senior management,
other employees may be selected to participate. Non-executive
directors are not eligible to participate.
The purpose of the FSP is to provide executives and other selected
employees with the opportunity to earn shares in Vodacom Group
Limited, by way of a forfeitable share award. This means that
participants receive shares (including dividend and voting rights) on
the date of the award, but those shares are subject to restrictions
and risk of forfeiture during a three-year vesting period. FSP awards
are granted annually.
Awards are made to qualifying staff using a combination of
Vodacom and Vodafone performance and retention shares.
Vodacom
retention
Vodacom
performance
Vodafone
performance
CEO
0%
100%
0%
1
Executive
director
33%
33%
33%
Prescribed
officer
33%
33%
33%
1. The CEO participates in a co-investment arrangement for Vodafone shares
described in more detail on page 71.
The portion of the forfeitable award which is subject to meeting
performance targets is weighted as follows for the current
outstanding awards:
Performance
period
Measures applied
2014 – 2017
Cumulative operating free cash flow (70%)
Total shareholder return (30%)
2015 – 2018
Cumulative operating free cash flow (70%)
Total shareholder return (30%)
2016 – 2019
Cumulative operating free cash flow (70%)
Total shareholder return (30%)
Remuneration report
continued
Vodacom Group Limited
Integrated report for the year ended 31 March 2016
70