Stateowned Air India seems to be following different compensation benchmarks for its top executives and the general employees. The cash-starved carrier has proposed a ten-fold increase in the sitting fee of its independent directors even as it struggles to pay the salaries of nearly 29,000 staff on time and frequently advances the salary and allowances? reimbursement date.
The airline has sent the proposal for a steep rise in sitting fee of independent directors to the ministry of civil aviation. Official sources said that Air India has decided to increase the sitting fee to Rs 20,000 from Rs 2,000 at present.
?One of the independent directors had asked for higher sitting fee and demanded to bring it at par with other public sector enterprises,? an official in the ministry said.
When contacted Air India chairman and managing director Arvind Jadhav confirmed the development saying it was under aviation ministry?s consideration.
?The management has also given written instructions to upgrade the tickets of independent directors to the highest class when they travel for the board meeting,? an airline official said. The independent directors on Air India board include Mahindra and Mahindra vice chairman and managing director Anand Mahindra and chairman of Kolkata-based Ambuja Realty Harsh Neotia. Other members are Ficci secretary-general Amit Mitra, former Air Force chief Fali H Major and NRI businessman Yusuff Ali.
Air India had in the past come under fire for hiring executives from private sector on as high a salary of Rs 3 crore per annum. One of the government-appointed director on Air India board told FE that it would be difficult for the airline to justify a cut in its employees? salaries when simultaneously it doles out hefty packages to senior officials. Air India is expected to shortly seek government backing for rationalising its highly unionised employees.