Vodafone employees get vast share options

Vodafone is dishing out £375 million worth of shares to all its employees worldwide in a bid to keep them motivated. Employees who have picked up attractive share options in the past have been upset to see the share price halve over the last year.

This is due to the huge acquisitions the mobile monster has made recently, particularly the £101 billion it paid for Mannesmann. They make excellent sense strategically but have had a negative effect on share price.

So while the City may still be behind Vodafone, employees are less impressed. This is due to change for those in Egypt or Hungary who will be given options worth nearly half their annual salary. They can decide whether to cash them in in three or ten years' time.

The shares are to be priced at 157.5p - a long way from the peak of over 600p in February last year. CEO Chris Gent said: "This move will be critical in ensuring the commitment and motivation of our employees on whose support we depend." ®