Vodafone Group Plc Chief Executive Officer Vittorio Colao saw his 2013 pay drop 30 percent on a cut in bonus from the carrier’s long-term incentive plan.
Colao’s total compensation for the year ended March 31 amounted to 11 million pounds ($17.1 million), compared with 15.8 million pounds a year earlier, according to the Newbury, England-based company’s annual report released today. Income from long-term incentives fell 34 percent to 7.5 million pounds, while salary was little changed at 1.1 million pounds.
Vodafone froze base pay for 2013 and 2014 for executive directors, and almost all members of the executive committee. The board “is always mindful of both wider conditions as well as what is happening elsewhere within Vodafone” when restricting pay, according to the report.
The world’s second-largest wireless carrier last month reported a 4.2 percent drop in full-year revenue to 44.4 billion pounds, the first decline since 2005. The company wrote down 7.7 billion pounds on operations in Spain and Italy as those economies’ outlook worsened and competition intensified.
Lowell McAdam, the CEO of Vodafone’s partner in the U.S., Verizon Communications Inc., received $14 million in total compensation last year, according to data compiled by Bloomberg. Verizon owns 55 percent of Verizon Wireless and Vodafone holds the remainder.
Vodafone’s corporation tax came to zero for the second year in a row in its home country. It had 294 million pounds in adjusted operating profit in the U.K. for the year ended March 31, down from 402 million pounds a year earlier.