Acknowledging his significant contribution to growth in profits, SpiceJet shareholders have approved paying up to Rs 15 crore as annual remuneration to managing director Ajay Singh. The no-frills airline has been making profits for seven straight quarters.
In addition the shareholders have cleared the appointment of Anurag Bhargava and Harsha Vardhana Singh as independent directors of the company. The proposals were among those approved during the annual general meeting of the airline held this week.
In a filing to the BSE, SpiceJet mentioned that various resolutions including the payment of remuneration to Singh has been approved with requisite majority. Singh has been instrumental in reviving the fortunes of SpiceJet after taking back the reins in January 2015 and had decided not to take salary till the airline turned profitable.
As per the proposal presented before shareholders, the airline proposed a remuneration of up to Rs 15 crore each year to Singh, subject to various conditions. Apart from a fixed monthly salary of Rs 50 lakh, he would also be eligible to a variable pay of up to two per cent of the annual profit and the latter component would be a maximum of Rs 9 crore per annum.
Singh would also be eligible for other benefits such as "company-maintained car with driver, mobile expense reimbursement, provident fund, gratuity, personal accident insurance, medical insurance for self and dependents".