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Rs 70 crore! Pay packet proposed for Sunil Mittal
Telecom giant Bharti Airtel on Monday proposed an annual pay package of up to Rs 70 crore (Rs 700 million) for its chief Sunil Mittal, besides other benefits, while seeking its shareholders' nod for his remuneration.
The proposed package would be more than double his last fiscal remuneration of Rs 27.5 crore (Rs 275 million), which is nearly three-fourth or about 76 per cent of the combined pay package of the company's all directors in fiscal ended March 31, 2011.
As per Bharti Airtel's annual report, released on Monday, Mittal's remuneration rose by about Rs 4 crore (Rs 40 million) or 17 per cent from his 2009-2010 fiscal's package of Rs 23.5 crore (Rs 235 million).
No salary hike to Sunil Mittal this year: Bharti
Meanwhile, Bharti Airtel said that it has sought shareholders' approval for an up to Rs 70 crore annual pay package to chief Sunil Mittal in the next five yeas, but any hike would not be given in the current fiscal.
Soon after seeking shareholder approval for remuneration package of up to Rs 70 crore and other benefits to Managing Director Sunil Mittal, the telecom major said that its human resource committee has decided for giving no increment to Mittal in 2011-12.
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Rs 70 crore! Pay packet proposed for Sunil Mittal
Bharti Airtel also sought its shareholders' approval for re-appointment of Mittal as its managing director for another five years with effect from October 1, 2011, at a remuneration package of up to Rs 70 crore, besides other benefits.
Interestingly, the remuneration for Manoj Kohli, Bharti Airtel's joint managing director, fell to Rs 4.1 crore (Rs 41 million), from Rs 4.52 crore (Rs 45.2 million) in the previous fiscal.
The total remuneration for all directors rose from Rs 29.89 crore (Rs 298.9 million) to Rs 35.98 crore (Rs 359.8 million).
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Rs 70 crore! Pay packet proposed for Sunil Mittal
Along with the annual report, the company also released the notice for its upcoming annual general meeting on September 1, where it will seek shareholders' nod for Mittal's re-appointment and remuneration.
Mittal would complete his current term as managing director on September 30.
The company has proposed a total fixed pay (inclusive of salary, allowances and retirement benefits) of up to Rs 20 crore (Rs 200 million) per annum for Mittal.
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Rs 70 crore! Pay packet proposed for Sunil Mittal
Besides, he would be paid variable pay (performance-linked incentives) of up to 200 per cent of the annual fixed pay in a financial year and also perquisites worth up to 50 per cent of the fixed pay, taking the total package to an amount not exceeding Rs 70 crore.
Mittal would also be entitled to other benefits like leave encashments and reimbursements of all 'legitimate expenses incurred by him in performance of his duties'.
However, the aggregate remuneration, inclusive of fixed pay, variable pay, perquisites, allowances and other benefits payable to Mittal as managing director would be subject to the overall ceilings laid down by the government, it added.
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Rs 70 crore! Pay packet proposed for Sunil Mittal
The company further said Mittal was at present entitled to a fixed remuneration of Rs 10 crore (Rs 100 million), plus variable pay and other benefits and the proposed remuneration was 'an enabling one and sets out the maximum amount that can be paid to Sunil Mittal over a period of 5 years or until September 30, 2016'.
Mittal's pay package in 2010-11 included salary and allowances of Rs 9.58 crore (Rs 95.8 million), performance linked incentive of Rs 17.87 crore (Rs 178.7 million) and perquisites worth Rs 4.83 lakh (Rs 483,000).