Bharti Airtel has proposed a higher annual pay of at least Rs 30 crore, excluding perquisites, for its Chairman Sunil Bharti Mittal.
The telecom major will seek shareholders’ approval for the proposed hike in pay package for Mittal as well as for its Managing Director for India Gopal Vittal at the Annual General Meeting scheduled on August 19.
It is proposed to re-appoint Mittal for a period of five years starting October 1, 2016 at fix pay of “Rs 210 million per annum or such other amount as may be determined by the Board of Directors of the Company, provided that increment if any during the subsequent years, shall not exceed 10 per cent per annum of the fixed pay of preceding financial year,” the company informed its shareholders.
Besides this, there will be a variable pay to the tune of Rs 9 crore linked to performance and will be paid annually.
This calculation excludes perquisites which shall not exceed 50 per cent of the fixed pay in any financial year.
Mittal shall also be entitled to reimbursement of all legitimate expenses incurred by him in performance of his duties and such reimbursement will not form part of his remuneration, the proposal said.
In 2015-16, Mittal was paid salary and allowance of Rs 19.17 crore, variable pay of Rs 7.5 crore and perquisites amounting to Rs 11.78 crore.
Remuneration of Mittal is also proposed to be revised with effect from June 1, 2016, for the remaining period of his tenure which is up to January 31, 2018.
He is proposed to be given fix salary of “Rs 70 million per annum or such other amount as may be determined by the Board of Directors” and variable pay of up to Rs 3 crore.
In 2015-16, Vittal was paid a salary of Rs 4.2 crore, variable pay of Rs 1.95 crore and perquisites of Rs 46,323.