Vodacom Integrated Report 2017

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74 Vodacom Group Limited Integrated report for the year ended 31 March 2017
Abridged remuneration report continued
Implementation report 03
Section
The implementation report details the outcomes of implementing
the approved policy detailed in Section 2 of this report.
2017 STIP
The table below shows the extent to which the Group targets were
met for the year ended 31 March 2017.
Measure Weight Threshold
100%
Target Maximum
Service
revenue 20%
EBITDA 20%
Operating
free cash flow
20%
Customer
appreciation 40%
Overall achievement against the performance measures for this
year was 108.6% for the Group on the short-term incentive plan.
Service revenue in specific was impacted by customer
disconnections in compliance with customer registration
requirements in Tanzania, the DRC and Mozambique.
The comparable result for the period that ended 31 March 2016
was 174.6%.
2014 LTI (Vesting in 2017)
Achievement of targets for the June 2017 vesting
Description
Vesting %
Weight
20%
Threshold
50%
Target
100%
Maximum
Operating
free cash flow
70%
TSR 30%
Overall achievement against the performance measures on
the 2014 issue of the long-term incentive scheme was 106.2%
of target.
Non-executive directors
Our business benefits from active non-executive directors who
do a lot more than attend meetings. Non-executive directors,
therefore, get a yearly fee for their services on the Board and
other committees rather than a fee for meetings attended.
They also do not receive short- or long-term incentives.
Our memorandum of incorporation states that shareholders
must approve these fees at the AGM. The current fee level was
approved on 19 July 2016 at the AGM and was implemented on
1 August 2016.
Shareholding
Details of the beneficial interests of directors and prescribed
officers in Vodacom’s ordinary shares (excluding interests in the
long-term incentive plans) are set out in the directors’ report
online at
Funding of share plans and dilution details of the shares used
for the FSP are set out in the consolidated annual financial
statements and the directors’ report, which is available at
All awards granted under the FSP are settled
through the shares purchased in the market and not by newly
issued shares.