Telecom giant Bharti Airtel today proposed an annual pay package of up to Rs 70 crore for its chief Sunil Mittal, besides other benefits, while seeking its shareholders' nod for his remuneration.
The proposed package would be more than double his last fiscal remuneration of Rs 27.5 crore, which is nearly three-fourth or about 76% of the combined pay package of the company's all directors in fiscal ended March 31, 2011.
As per Bharti Airtel's annual report, released today, Mittal's remuneration rose by about Rs 4 crore or 17% from his 2009-2010 fiscal's package of Rs 23.5 crore.
Bharti Airtel also sought its shareholders' approval for re-appointment of Mittal as its managing director for another five years with effect from October 1, 2011, at a remuneration package of up to Rs 70 crore besides other benefits.
Interestingly, the remuneration for Manoj Kohli, Bharti Airtel's joint managing director, fell to Rs 4.1 crore, from Rs 4.52 crore in the previous fiscal.
However, Kohli is paid remuneration by the company's overseas subsidiary with effect from February 1, 2011, instead of Bharti Airtel, as he has relocated to Africa as CEO (International) and has also been appointed as managing director of Bharti Airtel International (Netherlands).
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The total remuneration for all directors of Bharti Airtel rose from Rs 29.89 crore to Rs 35.98 crore.
Along with the annual report, the company also released the notice for its upcoming Annual General Meeting (AGM) on September 1, where it will seek shareholders' nod for Mittal's re-appointment and remuneration. Mittal would complete his current term as managing director on September 30.
The company has proposed a total fixed pay (inclusive of salary, allowances and retirement benefits) of up to Rs 20 crore per annum for Mittal.
Besides, he would be paid variable pay (performance-linked incentives) of up to 200% of the annual fixed pay in a financial year and also perquisites worth up to 50% of the fixed pay, taking the total package to an amount not exceeding Rs 70 crore.
Mittal would also be entitled to other benefits like leave encashments and reimbursements of all "legitimate expenses incurred by him in performance of his duties".