Vodafone braces for bumpy trip on pay at annual assembly

Vodafone is braced for a bumpy trip over its new boss’s multimillion pound pay bundle because it prepares to face buyers at its AGM this week.

Sky News understands that one of many principal shareholder advisory providers, IVIS, has urged warning over the FTSE 100 telecoms large’s choice to pay Margherita Della Valle a considerably greater wage than her predecessor, Nick Read, who was successfully ousted a number of months in the past.

Vodafone isn’t any stranger to public rows over govt pay, though it was unclear whether or not it might face a extreme backlash at Tuesday’s annual assembly.

It reported a blended image of its buying and selling efficiency on Monday, with worth rises contributing to higher-than-expected service revenues, whilst its buyer base in Germany, a key marketplace for the corporate, noticed sharp declines.

IVIS, which is run by the Investment Association, has given Vodafone’s pay report an ‘amber-top’ alert, which means that shareholders ought to fastidiously scrutinise their selections earlier than casting their votes.

Glass Lewis, one other service, has really helpful voting in opposition to the remuneration report, whereas Institutional Shareholder Services has mentioned it deserves “qualified support”.

A Vodafone spokesman mentioned: “Our remuneration policy – the three-year framework – and our annual remuneration reports have been strongly supported at previous AGMs.

“ISS is supportive of our new coverage and this 12 months’s remuneration report, and we’re assured that we’ll see good help from our shareholders this 12 months too.”

On Monday, Vodafone introduced that Luka Mukic, a former finance chief on the German software program large SAP, would substitute Ms Della Valle as CFO.

Shares within the firm had been buying and selling round 4% greater on Monday, giving it a market capitalisation of £20bn.