JSW Steel has proposed to increase salary and perks of its Chairman and Managing Director Sajjan Jindal by over 55% to Rs 12 crore for next five years.
This excludes profit-linked commission paid to Jindal, which has been proposed at 0.5% of the net profit in a given year, the company said in a notice to shareholders for the annual general meeting to be held on July 25.
"Your directors have recommended an overall ceiling of Rs 1,00,00,000 per month," the notice said, while seeking shareholders' nod to re-appoint Sajjan Jindal as Managing Director of JSW Steel till July 7, 2017 as his present term expired on Friday.
In the last fiscal, Jindal, who is also one of the promoters of the company, was paid Rs 6.94 crore as salary and Rs 0.77 crore as perks by JSW, an increase of about 20%, its annual report for 2011-12 showed.
However, profit-linked commission paid to him declined to Rs 10.47 crore in the last fiscal compared to Rs 14.36 crore of FY'11.
Besides, the company has also sought shareholders' approval to increase the salary of its Chief Executive Officer Vinod Noval by 138% to Rs 6 crore annually for 5 years after his re-appointment as CEO of the company. His present term had expired on April 29.
Noval was paid Rs 2.52 crore as annual salary and perks in 2011-12.
According to the annual report, the company paid Rs 54.76 crore to its Board of Directors. Of this, Sajjan Jindal alone was paid Rs 18.18 crore or over one-third of the total money paid to the company's directors.
Moreover, the company's wage bill also increased by 17% in the last fiscal to Rs 626 crore due to increase in employees strength to 9,522 from 8,925.
In 2011-12, JSW had posted a standalone net profit of Rs 1,625.86 crore, a decline of over 19% over the previous year as it struggled to maintain production at optimum levels in the wake of iron ore crisis in Karnataka and incurred fores losses due to volatility in rupee.
During the year, the company also increased its production capacity to 11 million tonnes per annum (MTPA) after commissioning new units at its Vijayanagar plant in Karnataka.
The steel major is planning to add another 2 MTPA capacity by 2014-15 at Vijayanagar, the annual report said.