Loss-making mobile phone giant Vodafone is to scale back its directors' controversial pay packages, according to press reports.

The Independent on Sunday said the company has drawn up tougher performance targets which bosses will have to meet in order to claim bonuses.

The stricter thresholds were drawn up in consultation with shareholders, many of whom have complained that Vodafone's recent dismal share price performance does not justify its directors' hefty pay and bonus performances.

Full details of the new regime will be published in Vodafone's annual report, due out this week, the Independent on Sunday said.

Mismatch

Last year, Vodafone chairman Sir Christopher Gent picked up a total of nearly �6m in pay and bonuses, prompting many shareholders to abstain from voting for his remuneration package at their annual meeting.

Sir Christopher was also offered a hefty bonus for successfully steering Vodafone into a merger with German rival Mannesmann two years ago.

But Vodafone's own financial performance has deteriorated, with losses for the latest financial year climbing to �13.5bn, the biggest in British corporate history.

The losses, which included a �6bn write-down reflecting a decline in the value of some of the company's acquisitions, took the shine off news of a jump in sales and higher than expected growth in underlying profits.

Vodafone's share price recently dropped below the symbolic 100 pence level, down from a high of 399p in March 2000.

Vodafone shares closed at 91p on Friday.