YC Deveshwar may get a Rs 1 cr monthly pay; ITC to seek shareholders' nod

ITC Ltd, at its forthcoming annual general meeting, will be placing before its shareholders a proposal to approve a salary of Rs 12 crore per annum to Y C Deveshwar, its non-executive chairman. This is in addition to the salary he is entitled to as non-executive director of the company.

As per the company, non-executive directors are entitled to remuneration by way of commission for each financial year, ranging between Rs 30-60 lakh.

Apart from the proposed Rs 1 crore per month salary, it is proposed that Deveshwar will get a rent-free furnished accommodation, medical expenses for self, spouse, and a chauffeur driven company car for personal use.

“In addition to coverage under personal accident insurance and sitting fees for attending the meetings of the board/committees thereof, Deveshwar would be entitled to remuneration by way of commission ranging between Rs 30 lakh and Rs 60 lakh for each financial year,” a company notice on the BSE said.

However, he will not be getting company’s stock option under his current mentorship role. Last year, he got 2,70,000 ordinary shares of Rs 1 each, which pulled up his total holding to 6,80,000 ordinary shares of Rs1 each.

As per the company’s annual report of financial year 2016-17, Deveshwar had earned a salary of Rs 21.17 crore, of which Rs 17.99 crore (including Rs 4.10 crore towards leave encashment on retirement) was paid to him as the executive chairman till February 4 this year and another Rs 3.18 crore was paid as chairman and non-executive director from February 5, which is subject to shareholder’s approval.

During FY16, Deveshwar’s remuneration stood at Rs 13.73 crore.

In the last annual general meeting, shareholders had approved that Deveshwar will be entitled to additional remuneration and benefits as may be determined by the board, subject to approval of the members.

In February last year, ITC had said that Deveshwar would be retiring from his executive role but will continue in a non-executive capacity to guide future leadership. For the first time, ITC split the post of the chairman and the CEO. Sanjiv Puri became the CEO, effective February 5, 2017, while Deveshwar became the non-executive chairman the same day.

It is also proposed that Puri’s salary will be revised to Rs 3.24 crore per annum with a performance bonus not exceeding 300 per cent of basic/consolidated salary.

During FY17, he earned an annual remuneration of Rs 169.12 lakh as compared to Rs 34.35 lakh during FY16.