Defaulting infrastructure firm IL&FS swung from a small Rs 142-crore profit in FY17 to a loss of Rs 1,887 crore in FY18 but thanks to the largesse of former LIC chairman — who headed IL&FS’s remuneration committee — chairman Ravi Parthasarathy saw an 89% hike in his pay, from Rs 10.8 crore in FY17 to Rs 20.5 crore in FY18.
Parthasarathy stepped down on October 2, 2017, and the company that has debt in excess of Rs 116,000 crore began defaulting on loans a few months ago. As a proportion of IL&FS’s consolidated profits, Parthasarathy’s remuneration rose from 3.7% in FY14 to 7.6% in FY17.
IL&FS’s top three employees – Parthasarathy, Hari Sankaran and Arun K Saha earned Rs 35.2 crore in FY18, a 33% hike over FY17, thanks largely to Parthasarathy’s compensation. As a proportion of FY17 profits, the three got 18.7%.
In FY18, independent directors got Rs 2.2 crore, with Maruti Suzuki chairman RC Bhargava getting paid the most, Rs 0.57 crore.
The firm’s auditors got paid Rs 13.7 crore in FY18. SR Batliboi got Rs 2.3 crore for auditing IL&FS’s standalone results, Rs 2 crore for IL&FS Engineering and Rs 8.2 crore for IL&FS Transportation Networks; BSR & Associates got paid Rs 1.1 crore for auditing IL&FS Investment Managers. Audit fees for these four firms rose from Rs 4.5 crore in FY15 to Rs 15.9 crore in FY17, and fell to Rs 13.7 crore in FY18.