Phone boss hits the jackpot

VODAFONE AirTouch has given one of its directors an ex gratia award of shares worth pounds 9.26m. The hand-out, which goes to Arun Sarin, the head of the US and Asia operations, is detailed in the offer document for the mobile phone group's pounds 84bn hostile bid for German rival Mannesmann.

Mr Sarin, who joined the group when Vodafone bought AirTouch earlier this year, will receive 3.04 million shares in the group, currently worth pounds 9.26m, as part of a restricted share scheme granted to him alone last July.

There are no conditions on the award, a matter which will raise the hackles of Vodafone investors. It is the policy of leading fund managers, such as Standard Life and Legal & General, to oppose bonus packages that do not have performance criteria attached.

Mr Sarin has received 1.04 million of the shares. He will pick up another 666,000 next July and 1.33 million in July 2001. He already owns options over 5 million shares in the company, awarded to him by AirTouch before it was taken over by Vodafone. These are currently worth pounds 10m. Sam Ginn, the chairman of Vodafone AirTouch, also has share options from his time at AirTouch and they are currently worth around pounds 52m. Mr Ginn also has phantom share options, the value of which has not been disclosed.

Vodafone defended Mr Sarin's award, saying it paid the going rate for each market and that the US market for mobile phone executives was particularly competitive.

The group finally launched its hostile bid for Mannesmann on Thursday, so ending a phoney war that has been going on for nearly two months since Vodafone said it would launch an offer.

The all-share bid would give Mannesmann investors 47.2 per cent of the combined group and is not conditional on European Commission approval.

Mannesmann seized on this issue, saying Vodafone could end up in a situation where it controls Mannesmann but cannot secure the 75 per cent majority needed to force through the sale of Orange, the UK mobile phone firm recently bought by the German group. Without the sale of Orange, Vodafone/Mannesmann would have an overwhelming monopoly in the UK.

Vodafone has also received another setback to its international expansion plans with news that BT is planning a pounds 4.5bn bid for Airtel, the Spanish mobile phone group. Vodafone has secured a deal to buy a 30.5 per cent stake in Airtel, but has now been outbid by BT which already owns 17.8 per cent of Airtel's shares.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
a clockwork orange, stanley kubrick
The Tesco Hudl2: An exceptional Android tablet that's powerful, well-built and outstanding value

Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
Life and Style
food + drinkAuthor DBC Pierre presents his guide to the morning after
Life and Style
food + drink
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas