Telecom company Idea Cellular chief Kumar Mangalam Birla remuneration in 2016-17 was Rs 3.3 lakh that was paid as a ‘sitting fee’ for the meetings of the telco that he attended – Birla holds 0.01 per cent share in Idea Cellular. Curiously, this is even lower than the median remuneration of employees working in the company. In fact, the telco had raised median remuneration in the financial year 2016-17 by 8 per cent to a Rs 7.8 lakh high. On the other hand, Idea Cellular Managing Director Himanshu Kapania’s pay was Rs 10.046 crore in 2016-17 which includes an ‘excess’ variable amount of Rs 3 crore, PTI reported.The company could rightfully recover the amount from the MD, as there are norms there for that, however, the telco is looking to get shareholders approval not to do so. The meet is set for June 30. In an AGM notice, the telco said, “…approval of the members of the company is hereby accorded to ratify and confirm the waiver of the recovery of the excess remuneration amounting to Rs 3,05,35,524 paid to Himanshu Kapania, Managing Director of the company for the financial year 2016-17, which is in excess of the limits prescribed”.
Idea Cellular has posted its first-ever annual consolidated loss at Rs 404 crore for 2016-17, PTI said. The company’s annual income has fallen to Rs 35,882.7 crore at the end of 2016-17 from Rs 36,162.5 crore that it had revealed at the end of the last fiscal. According to the news agency, the AGM will also decide on resolution for minimum payment to be made to the MD “in case the company has no profits or the profits of the company are inadequate during the two financial years commencing from April 1, 2017 to March 31, 2019”.