IndiGo seeks shareholder approval to pay CEO Ronojoy Dutta's salary

IndiGo Airlines has sought shareholder's approval to pay remuneration payable to Chief Executive Officer Ronojoy Dutta for three years, including FY20. Ronojoy Dutta, who had recently taken a 35 percent pay cut, was paid Rs 11.4 crore in salary for FY2020, the company disclosed in its latest annual report.

InterGlobe Aviation, which runs IndiGo, has sought permit by way of a special resolution which will be put to vote at the company’s annual general meeting on September 4, Business Standard has reported.

Dutta had joined IndiGo as a consultant and was appointed as its CEO in early 2019. He took charge as the whole-time director in January 2020.

Also read: InterGlobe Aviation QIP: IndiGo operator to raise up to Rs 4,000 crore via share sale

According to the airline's annual report, Dutta's remuneration package includes a gross annual salary of $ 1.27 million, which would be payable in rupees. He is also entitled to a commitment bonus payout.

In FY2020, Dutta received a total remuneration of Rs 11.4 crore in his role as CEO and whole-time director. "In addition to the remuneration, an amount of Rs. 56.18 million ( Rs 5.6 crore) has also been provided towards committed bonus according to the terms of the contract, being amount accrued till March 31, 2020," the company said in its annual report.

Also read: Domestic air traffic recovers marginally in July, up 6.1% MoM; SpiceJet retains top spot in occupancy rate

The company said that the remuneration to be paid to Dutta needs the approval of shareholders by way of a special resolution in case of no profit or inadequacy of profit made by the company.

Meanwhile, domestic air traffic made a minor recovery in July, growing to 21.07 lakh passengers, a 6.1 percent increase from June, when 19.84 lakh fliers took to the air. The improvement, even though small, will bring solace to the industry that continues to struggle because of the COVID-19 disruption.

Year-on-year, however, the traffic declined 82.3 percent in July.  In July 2019, 1.19 crore passengers travelled by air. But here also there is a silver lining. The drop is lower than what was seen in June when the decline was 83.5 percent, year-on-year.

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