In the black for seven straight quarters, SpiceJet plans to pay up to Rs 15 crore annual remuneration, including a fixed monthly salary of Rs 50 lakh, to its Managing Director Ajay Singh.
Singh, who has been instrumental in reviving the fortunes of SpiceJet after taking back the reins in January 2015, had decided not to take salary till the airline turned profitable.
The no-frills carrier has now sought shareholders’ nod for giving a remuneration of up to Rs 15 crore every year to Singh subject to various conditions.
Apart from a fixed monthly salary of Rs 50 lakh, he would also be eligible to a variable pay of up to two per cent of the annual profit and the latter component would be a maximum of Rs 9 crore per annum, according to the notice of company’s annual general meeting.
This is among the proposals that would be taken up at the annual general meeting scheduled to be held on December 26.
The airline will seek shareholders’ approval for paying Singh a “remuneration of Rs 50,00,000 per month as fixed pay (with such component as may be agreed and decided by the board)”.
Besides, he would be eligible for “up to two per cent of annual net profit of the company payable upon completion of relevant financial year (subject to a maximum of Rs 9,00,00,000 per annum) as variable pay”.
As per the notice, these payments would be effective April 1, 2016 for the remainder period of his appointment — up to May 20, 2018.
The remuneration for Singh has been recommended by the company’s nomination and remuneration committee.
Apart from this package, Singh would be eligible for other benefits such as “company-maintained car with driver, mobile expense reimbursement, provident fund, gratuity, personal accident insurance, medical insurance for self and dependents”.
The notice also said the airline’s board of directors can modify the remuneration payable to Singh.
Among others, SpiceJet will move resolutions for appointment of independent directors.
Staying profitable for the seventh straight quarter, SpiceJet last month reported its highest-ever quarterly profit of Rs 59 crore in July-September. It had a net profit of Rs 29 crore in the year-ago period.