The directors of Bharti Airtel, India’s largest telecom company, has suggested a salary of Rs 30 cr per year for Sunil Bharti Mittal, the founder and chairman of the company, for the current financial year.
Out of the Rs 30 cr, Rs 21 cr will be paid as a fixed salary and Rs 9 cr as variable pay.
The figure represents an increase of 9% over his salary for the last financial year.
In the last two years for which the company has determined variable pay, Sunil Mittal has been able to achieve more than his target, thus scoring more than 100% in variable pay calculation.
For example, in the year 2014-15 — the last one for which Mittal’s variable pay was calculated — he was paid Rs 9.9 cr even though his target variable pay was Rs 8.25 cr.
Similarly, Mittal was given a variable pay of Rs 20 cr in the previous year, though the target variable pay was Rs 17.5 cr.
For the year ended March, Mittal has a target variable pay of Rs 7.5 cr, and a fixed pay of Rs 20 cr. However, the actual outgo has not been decided yet.
“The Board is yet to decide final variable pay of Sunil Bharti Mittal for 2015-16,” Airtel said.
In addition to the above payments, Mittal is also reimbursed for any expenses — such as air tickets — incurred by him in performance of his duties as the Chairman.
Mittal’s reappointment for another five years and the payment terms must be approved by the shareholders at the company’s annual general meeting on Aug 19. The company management recommended that shareholders should do so.
Mittal, “has been involved in the strategic matters since inception. The Board of Directors is of opinion that it will be in the best interest of the Company that Mr. Sunil Bharti Mittal continue as Chairman of the Company,” it said.
Mittal is by far the highest paid official in the company. He is followed by Gopal Vittal, who was appointed as the managing director three years ago and as CEO for India and South Asia in 2014.
The Board of Directors have proposed a salary of Rs 10 cr per year to Vittal, including a fixed pay of Rs 7 cr and variable pay of Rs 3 cr.