Bharti Airtel’s shareholders have approved the re-appointment of Gopal Vittal as managing director of the company for a period of five years with effect from February 1, 2023.
Over 97 percent of total votes polled were in favour of the resolution, and the same “has been passed with requisite majority”, Airtel said in a regulatory filing on the outcome of its Annual General Meeting (AGM).
The shareholders also approved a special resolution related to payment of remuneration to Vittal as managing director and CEO of the company, with 89.57 percent votes in favour and 10.42 percent against the proposal.
“Therefore the above resolution has been passed with requisite majority,” the filing said.
The AGM of the company was held on Friday (August 12).
As per the notice of AGM dated July 21, 2022, shareholders’ nod was sought for “re-appointment of Gopal Vittal as Managing Director (designated as Managing Director and CEO) for a further period of five (5) years with effect from February 1, 2023, liable to retire by rotation…” Vittal was re-appointed as the managing director and CEO with effect from February 1, 2018 for a period of 5 years, (upto January 31, 2023). His re-appointment was due for another term of five years (that is from February 1, 2023 to January 31, 2028).
The AGM agenda circulated earlier, giving out the details of the proposed remuneration to be paid to Vittal, mentioned the fixed pay to be Rs. 9.6 crore per annum “or such other amount as may be determined by the Board of Directors of the company, provided that increment, if any, during the subsequent years, shall not exceed 15 percent per annum of the fixed pay of preceding financial year.” It further said the variable pay (Performance Linked Incentive) to be paid annually after the end of the financial year is Rs. 6.2 crore (at 100 percent performance). The total variable pay shall not exceed 90 percent of the annual fixed pay for any financial year, it added.
For 2021-22, Vittal’s fixed pay (excluding perquisites) stood at Rs. 9.1 crore, in addition to a variable pay component.