The mobile phone giant, Vodafone, today promised a review of its directors' pay after its shareholders expressed alarm at the amount of money set aside for the chief executive, Sir Chris Gent.
Under the company's share and bonus scheme, Sir Chris took home £7m last year.
Lord MacLaurin, the chairman, told Vodafone's shareholders: "I do accept the complexity of the policy allows for misinterpretation and that a significant number of shareholders have abstained or voted against it."
He pledged "a thorough review of remuneration arrangements" but insisted the current policy of remuneration was "not excessive".
He said: "Our remuneration policy follows best practice guidelines. If we are to compete in a truly global business we have to pay truly world-class salaries."
Sir Chris - who was knighted earlier this year - was paid £6.88m in salary and bonuses last year.
It is the second year running that shareholders have expressed concern over the pay arrangements for Vodafone's executives against the backdrop of a weakening dividend.
The Vodafone board also had to defend its stance on 3G amid rumours it would have to delay the rollout of its third generation mobile networks.
Sir Chris said Vodafone was still on track to open its service in the second half of 2002 but added that manufacturers were struggling to deliver the handsets.
"While we're still on track with our own plans, there could be a slippage so it's better to face this now and be prudent about capital expenditure until there is certainty about the arrival of products," he said.
Vodafone's shareholders also voiced concerns about the declining share price but all Lord MacLaurin would say in reply was it had doubled since 1997, and refused to give a target price.
After the company's annual general meeting, Sir Chris told reporters he was in favour of a flotation of Japan Telecom's mobile phone unit, J-Phone, which is partly owned by Vodafone.
"An IPO of the business is certainly on their [Japan Telecom's] minds. We believe they [J-Phone] should be a Japanese-listed company," he said.
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