The shareholders of Bharti Airtel have approved the reappointment of Gopal Vittal as director of the company for a period of five years effective February 1, 2023.
More than 97 percent of the total votes were in favor of the resolution, and the same “has been passed by the required majority,” Airtel said in a regulatory filing on the outcome of the annual general meeting (AGM).
Shareholders also approved a special resolution regarding the payment of compensation to Vittal as director and CEO of the company, with 89.57 percent voting in favor and 10.42 percent against the proposal.
“Therefore, the above resolution was passed with the required majority,” the filing said.
The company’s AGM was held on Friday (August 12).
Pursuant to the convocation of the AGM of July 21, 2022, the nod of the shareholders was requested for “re-appointment of Gopal Vittal as General Manager (designated as General Manager and CEO) for another five (5) year term effective February 1 2023, due to retire by rotation…” Vittal was reappointed as Managing Director and CEO with effect from February 1, 2018 for a term of 5 years (until January 31, 2023). His reappointment was due for another five-year term (i.e. from February 1, 2023 to January 31, 2028).
The AGM agenda that has been circulating earlier and detailing the proposed compensation to be paid to Vittal stated the fixed remuneration of Rs. 9.6 crore per annum or such other amount as may be determined by the board of directors of the company, provided that any increase in subsequent years shall not exceed 15 per cent per annum of the fixed salary of the previous financial year . It further said that the variable pay (Performance Linked Incentive) to be paid annually after the end of the fiscal year is Rs. 6.2 crore (at 100 percent performance). The total variable pay should not exceed 90 percent of annual fixed wages for any fiscal year, it added.
For 2021-22, Vittal’s fixed salary (excluding extras) was Rs. 9.1 crore, in addition to a variable compensation component.