Vodafone CEO in line for a $90 million payout
Vodafone chief executive Arun Sarin is in line for a £45 million payout thanks to this year's turnaround in the mobile phone giant. His potential windfall - from shares and share options - has soared in line with the group's share price. Shares in the Newbury-based telecoms giant have risen by 33% in the past 12 months as it the business outperformed City profit forecasts and enjoyed success abroad. According to the Sunday Times, Sarin could exercise share options worth £10 million immediately, and also owns £11.4 million of shares outright. He also has £3.6 million tied up in a deferred bonus scheme and two more tranches of share options worth £8.7 million that are exercisable next year and in 2009, the paper said. On top, the Indian-born boss has £11.8 million of shares in a long-term incentive scheme, the awarding of which depends on the share price.
This year's share performance for Vodafone has been in sharp contrast to 2006, when the stock fell 1.5%. Sarin, who started as chief executive in July 2003, spent much of that year embroiled in boardroom wrangling, with investors upset by slow growth and huge asset write-downs.
This year has seen him sell off under-performing or part-owned Vodafone assets in Japan, Switzerland and Belgium, and enjoy big revenue growth in fast-growing markets such as India and Turkey paying off. Sarin has also cut costs in Europe fall in an efficiency drive. Much of this year's share price growth has taken place since the summer, when investors switched to defensive stocks such as telecoms during volatile trading. Last month Vodafone delivered underlying earnings up 5% to £6.57 billion - better than the £6.4 billion forecast in the City. It has around 18 million mobile customers in the UK, part of a worldwide total of 241 million. The Newbury-headquartered company now expects full-year underlying operating profits to be within £9.5 billion to £9.9 billion, up around £200 million on original expectations.
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