In an attempt to regain lost subscribers, bonus payments to Vodafone management will now be linked to taking market share from rivals. The company said that this new scheme would be an integral part of its strategy from 2010 to 2011.
In its latest annual report, Vodafone--which has been losing market share to rivals in countries including the UK and Germany, said that bonuses paid out to top management would be based, in descending order of importance, on revenue and competitive performance assessment, free cash flow and operating profit.
"At the start of the year, a key focus for the company was the generation of cash flow," said the annual report. "As the focus now moves more to growing revenue and market share, the weightings have been modified for the coming year to appropriately reflect this change."
This focus on boosting customer numbers is thought to have been caused by Vodafone losing market share in some of its key European markets partly because it failed in 2007 to secure exclusive deals to sell the iPhone. The company has recently been using its recently acquired iPhone distribution rights to aggressively promote the product.
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