Vodafone elaborates on bonuses

Vodafone sought yesterday to clarify its role in the Mannesmann bonus payment controversy, after two of its leading protagonists…

Vodafone sought yesterday to clarify its role in the Mannesmann bonus payment controversy, after two of its leading protagonists on Wednesday gave contrasting versions of events leading to the UK group's €175 billion (£137.8 billion) takeover of its German rival last year.

A spokesman for Vodafone - which owns Eircell - conceded its board had been contacted by Hong Kong-based Hutchison Whampoa, then a large Mannesmann shareholder, on February 3rd last year about doubling the severance package of Mr Klaus Esser, Mannesmann chief executive. The clarification came after Sir Christopher Gent, chief executive of Vodafone on Wednesday seemed to contradict a statement by Mr Esser that he and Hutchison had obtained a formal reassurance from the Vodafone board, on February 3rd, that it would not oppose the bonus payment. Sir Christopher and Mr Esser, and eight former Mannesmann directors, are under investigation by the Dⁿsseldorf state prosecutor that DM150 million in bonuses paid to Mannesmann directors and managers was aimed at influencing the bid. Both deny wrongdoing. The prosecutor is also probing DM28 million in bonuses awarded to his closest associates.

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