Mittal will receive the salary only after the shareholders agree to it. The new expected hike is more than double his last fiscal remuneration of Rs. 27.5 crore, which is nearly three-fourth or about 76 per cent of the combined pay package of the company's all directors in fiscal ended Mar 31, 2011.
The company's annual report released on Tuesday states that Mittal's remuneration rose by about Rs. 4 crore or 17 per cent from his 2009-2010 fiscal package of Rs. 23.5 crore. Bharti Airtel is also seeking the shareholders' approval to reinstate Mittal as the company's Managing Director for the next five years. This proposal is with effect from Oct 1, 2011 that will see the swell in the pay packet beside other benefits. He will complete his current term on Sept 30.
The company has also plans for a total fixed pay (inclusive of salary, allowances and retirement benefits) of up to Rs. 20 crore per annum for Mittal. He would also be entitled for a variable pay, also called performance- linked incentives of up to 200 per cent of the annual fixed pay in a financial year. All of this combined would make him the recipient of this pay packet amounting to Rs. 70 crore.
Mittal will also be entitled to other benefits like leave encashments and reimbursements of all "legitimate expenses incurred by him in performance of his duties" Mittal currently enjoys a fixed remuneration of Rs. 10 crore, plus variable pay and other benefits and the proposed remuneration was "an enabling one and sets out the maximum amount that can be paid to Sunil Mittal over a period of 5 years or until September 30, 2016."