Rebuke over Vodafone bonuses

CELLPHONE group Vodafone has suffered a harsh rebuke from investors over its pay policies, despite its extensive lobbying of the City.

Pressure group Pensions and Investment Research Consultants warns that the mobile giant's top executives could pocket 'excessive' bonuses for average or below average performance.

Chief executive designate Arun Sarin, who takes the reins at next week's annual general meeting, receives a basic salary of £1.1m, but will collect bonuses worth another £1m for average performance. If the mobile giant performs well ahead of its rivals, he could pocket four times his basic pay.

Vodafone faced considerable criticism over rewards to Sarin's predecessor Sir Chris Gent.

But a campaign over the winter appears to paid dividends, winning over the powerful National Association of Pension Funds and the Association of British Insurers. Vodafone eased 2 1/2p to 114p.