A £2m bonus payout to Vodafone chief executive, Sir Christopher Gent, despite leading the company to one of the largest losses in UK corporate history, is set to enrage shareholders, who have see their stock plummet in value in the last six months.
Accountancy Age, 29 May 2002
And it also certain to add fuel the heated debate about executive payouts for poor company performance.
The company's full-year pre-tax losses were £13.5bn, up from £8.1bn last time and a decision as to whether he will get his bonus will be decided by a remuneration committee in early July.
Gent banked more than £5m in cash in 2000 in a controversial pay-out, which had shareholders furious. However this was only the first half of an award that was due to be paid again two years later if he met certain targets.
Originally, this was worth around £5m in shares but because Vodafone's shares have plummeted they are only worth £2m.
City analysts believe that Gent will get his shares as the targets have been met.
Vodafone shares were last trading at 104p.
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