Gautam S. Adani’s Extended Chairmanship Comes with Substantial Compensation
NEW DELHI (India CSR): Gautam S. Adani will continue as Executive Chairman of the Adani Group for another five years, according to the company’s recent board decision. His second term will commence on December 1, 2023, following the expiration of his current tenure on November 30, 2023.
Unanimous Decision by Nomination & Remuneration Committee and the Board
The proposal to extend Mr. Adani’s appointment was discussed and approved at two separate meetings held by the company’s Nomination & Remuneration Committee and the Board. The decision to re-appoint him was unanimously endorsed on May 3 and 4, 2023, respectively. However, the final approval rests with the shareholders, who will have their say at the upcoming General Meeting.
Comprehensive Compensation Package for the Chairman
The remuneration and benefits package for Mr. Adani, as Executive Chairman, is well-detailed. Starting December 1, 2023, he will receive a monthly salary of Rs. 18,25,000, with a scope of increment up to Rs. 21,00,000. He is also eligible for a commission of up to 2% of the company’s Net Profit each financial year. This calculation is in accordance with Section 198 of the Companies Act, 2013, subject to the overall ceiling outlined in the same section.
A Broad Spectrum of Perquisites
In addition to his salary and commission, Mr. Adani’s compensation package includes a wide range of perks. These benefits span across three categories, covering healthcare, travel, social club memberships, personal accident insurance, and provident fund contributions.
Under category A, the company will cover all medical expenses for Mr. Adani and his family, annual leave travel concession, club membership fees (limited to two clubs), and personal accident insurance as per company policy.
Category B concerns retirement benefits. The company will contribute to the Provident Fund and Superannuation Fund on his behalf, and these will not count towards the ceiling on perquisites as long as they remain non-taxable under the Income-tax Act, 1961. Gratuity will also be paid as per the applicable laws and company rules.
In Category C, the company will provide a car with a driver for both official and personal use, and will bear the cost of a residential telephone.
The reappointment agreement further states that as the Executive Chairman, Mr. Adani will not retire by rotation and will not receive any sitting fees for attending any meetings of the Board or its Committees.
