We Think Vodafone Group Public Limited Company's (LON:VOD) CEO Compensation Package Needs To Be Put Under A Microscope
Key Insights
- Vodafone Group to hold its Annual General Meeting on 29th of July
- Total pay for CEO Margherita Della Valle includes €1.49m salary
- Total compensation is 176% above industry average
- Vodafone Group's three-year loss to shareholders was 17% while its EPS was down 34% over the past three years
Vodafone Group Public Limited Company (LON:VOD) has not performed well recently and CEO Margherita Della Valle will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29th of July. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for Vodafone Group
Comparing Vodafone Group Public Limited Company's CEO Compensation With The Industry
At the time of writing, our data shows that Vodafone Group Public Limited Company has a market capitalization of UK£20b, and reported total annual CEO compensation of €5.4m for the year to March 2025. That's a modest increase of 6.0% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.5m.
In comparison with other companies in the the United Kingdom Wireless Telecom industry with market capitalizations over UK£5.9b, the reported median total CEO compensation was €2.0m. Accordingly, our analysis reveals that Vodafone Group Public Limited Company pays Margherita Della Valle north of the industry median. Furthermore, Margherita Della Valle directly owns UK£3.7m worth of shares in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | €1.5m | €1.4m | 27% |
| Other | €4.0m | €3.7m | 73% |
| Total Compensation | €5.4m | €5.1m | 100% |
Talking in terms of the industry, salary represented approximately 33% of total compensation out of all the companies we analyzed, while other remuneration made up 67% of the pie. It's interesting to note that Vodafone Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Vodafone Group Public Limited Company's Growth Numbers
Over the last three years, Vodafone Group Public Limited Company has shrunk its earnings per share by 34% per year. In the last year, its revenue is up 2.0%.
The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Vodafone Group Public Limited Company Been A Good Investment?
Given the total shareholder loss of 17% over three years, many shareholders in Vodafone Group Public Limited Company are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Vodafone Group that investors should look into moving forward.
Important note: Vodafone Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.