VODAFONE CHIEF IN LINE FOR £25M EXIT

Sarin steps down as chief executive in July but will remain with the company as a consultant until he retires in March next year.

In his final year in charge, he was paid £3.6million in salary-and-cash bonuses but could make a further £22million in shares and options so long as Vodafone continues to hit targets by the time he eventually leaves.

His successor, Vittorio Colao, could make more than £8million in his first year.

Vodafone is introducing a new long-term pay plan that will give shares worth up to 550 per cent of Colao’s £975,000 base salary, or £5.4million, if the company hits all its targets.

The rest would be made up of salary-and-cash bonuses.

A company spokesman said the new scheme actually paid out less than the old one.

Targets have been changed, with cashflow rather than earnings per share making up a prime part.

However, Colao’s base salary is less than Sarin’s £1.3million, reflecting his lack of experience in the top job.

He made £2.9million in salary-and-cash bonuses last year.

Vodafone shares were flat at 155dp.

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