Bharti Airtel proposes annual pay package of company Chairman and MD Sunil Bharti Mittal to Rs 70 crore

Sunil Bharti Mittal Airtel

Leading telecom service provider Bharti Airtel has proposed an enabling provision to increase the annual pay package of company Chairman and Managing Director Sunil Bharti Mittal to Rs 70 crore. However, in a statement, Airtel said Mittal’s total remuneration will not increase during FY12.

“The proposal to revise the remuneration of chairman and managing director Sunil Bharti Mittal up to a maximum of Rs 70 crore as proposed in the company’s 2011 AGM notice, is an enabling provision for the next five years and should be seen in that light.

The proposed package is almost 2.5 times the remuneration of Rs 27.5 crore he had drawn last financial year. The company has sought its shareholders’ nod for the increase in Mittal’s renumeration and his re-appointment as the managing director for another five years with effect from October 1, read the notice on the company’s website. The proposal will come up in the annual general meeting (AGM) on September 1.

According to the AGM notice, the proposed package has a total fixed pay (including salary, allowances and retirement benefits) of up to Rs 20 crore per annum. Apart from this, the variable pay (performance-linked incentives) component will be up to 200 per cent of the annual fixed pay in a financial year and perquisites of up to 50 per cent of the fixed pay, taking the total package for Mittal to a maximum of Rs 70 crore.

At present, Mittal’s fixed renumeration stands at Rs 10 crore, plus variable pay and other benefits. His pay package in 2010-11 included salary and allowances of Rs 9.58 crore, performance-linked incentive of Rs 17.87 crore and perquisites worth Rs 4,83,000.