NEW DELHI, July 5: London-based miner Vedanta Resources plc has proposed a 28 per cent hike in annual bonus to its Chairman Anil Agarwal to 8,97,000 pounds (Rs 8.85 crore) for the 2014-15 fiscal.
Vedanta in its annual report to shareholders, ahead of its annual general meeting (AGM) on August 3 in London, said the base compensation for Agarwal will remain unchanged at 1.608 million pounds.
The company’s Remuneration Committee Chairman Euan Macdonald said the firm achieved 37.2 per cent of the maximum performance targets set for the year and “subsequently a bonus of 55.8 per cent of salary is proposed for the Executive Chairman (Anil Agarwal) and Vice Chairman (Navin Agarwal)”.
Anil Agarwal’s annual bonus for the last fiscal will be 8,97,000 pounds as compared to 7,00,000 pounds in 2013-14.
His brother Navin will get 5,33,000 pounds, up from 3,90,000 pounds in the previous fiscal.
Navin’s base salary too has gone up from 9,16,000 pounds in 2013-14 to pound 9,68,000 pounds for the last fiscal. His total remuneration after taking into account taxable benefits will be 1.707 million pounds in 2014-15 as against 1.498 million pounds in the previous year.
Anil Agarwal’s annual remuneration will increase to 2.634 million pounds in 2014-15 as against 2.454 million pounds in the previous year. The remuneration also includes 1,29,000 pounds taxable benefits, the annual report added.
Remuneration Committee Chairman Euan Macdonald said despite the challenging macroeconomic environment, the Group’s performance on various financial and production parameters has been “encouraging and noteworthy”.
However, a significant fall in global commodity prices has impacted Vedanta’s performance. The fall in oil prices has led to Vedanta taking a USD 3.1 billion impairment on value of Cairn India. Vedanta owns 59.9 per cent of Cairn India, which it purchased in 2011.
“We fully recognise the impact of the overall decline in market conditions has had on our shareholders. We propose, for our Executive Directors, for 2015 no increase to their fixed compensation,” he said.
For Vedanta chief executive officer Tom Albanese, the panel said his employment contract entitled him to an incentive bonus up to a maximum of 50 per cent of salary.
“Considering his contributions and performance during the year, the Committee determined that he should receive a bonus payout of 37.20 per cent of salary,” he said.
Albanese will get 3,72,000 pounds in bonus on base salary of 1 million pounds.
“Under the remuneration policy, all the Executive Directors’ bonuses will be paid half in cash, with the balance in deferred shares,” the Committee said.
Also, recognising the challenging market context, “the Remuneration Committee has determined that there should be no salary increases for the Executive Directors for this year. No changes will be made to the fees of the Non-Executive Directors,” the annual report said. (PTI)
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