PracticeConsultingBonus for Gent as shareholders revolt

Bonus for Gent as shareholders revolt

Angry Vodafone shareholders were today unable to prevent chief executive Chris Gent pocketing eight million new share options at the firm's annual meeting,

This was despite Tuesday’s admission that it is now only the UK’s third largest mobile operator by subscriber numbers.

The telco admitted yesterday that 16% of its 12.5 million subscribers are inactive, relegating the longstanding market leader to third place in the UK mobile market behind Orange and BT Cellnet.

The news did not help Gent, who was facing a vote on his record fat cat bonus. Some 10% of shareholders voted against approving the package, while another 30% abstained.

This lukewarm endorsement has forced Vodafone to promise a full review of its bonus scheme for next year. Since the completion of its giant merger with Mannesmann, for which Gent was rewarded with a multimillion pound bonus, shares in Vodafone have fallen from over 350p to stand at 140p this afternoon.

Chairman Lord MacLaurin said: ‘We are unashamedly going to pay the very best salaries to the very best people,’ adding that the company did not want to be seen as arrogant. He promised that the firm was ‘very conscious of the feelings of shareholders’.

After leading the market in subscribers since 1996, Vodafone has now fallen behind after cutting inactive subscribers to bring its reporting into line with Orange and BT Cellnet. Both have previously moved to tighten up their subscriber numbers by eliminating those who do not make or receive calls for a number of months – usually three – when they calculate their customer base.

Orange is now leading the market with 11.9 million subscribers, followed by BT Cellnet with 10.9 million and Vodafone on 10.5 million. Vodafone had led the UK mobiles sector since early 1996, but now ranks ahead of just One 2 One and virtual operators like Virgin Mobile.

However, Vodafone claims that its customers spend more on average, giving it a 37% share of total market revenues. Figures also show that just 0.4% of revenues are generated by internet usage, although SMS use accounts for 8.2%.

Links

Vodafone to review executive pay

  • This article first appeared on vnunet.com

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer