ITC seeks nod to pay Deveshwar Rs 1 cr a month plus perks

ITC Ltd is seeking its shareholders' nod for additional remuneration to non-executive chairman Y C Deveshwar, that includes a monthly salary of Rs 1 crore.

At last year's AGM, the shareholders of the company approved the appointment of Deveshwar as non-executive director and chairman for a period of three years with effect from February 5, 2017.

At the request of ITC's nomination & compensation committee and the board, he had agreed to continue as chairman in non-executive capacity and also mentor the new executive management.

In a notice to the shareholders ahead of the company's AGM on July 28, ITC said taking into consideration the enlarged role of Deveshwar, the board on October, 26 2016 had approved "additional remuneration" for him that needs nod of the shareholders.

The "additional remuneration" includes monthly pay of Rs 1 crore, rent free furnished accommodation, medical expenses for him and spouse along with use of chauffeur driven company car for personal use and coverage under personal accident insurance.

He will also be entitled to commission between Rs 30-60 lakh as sitting fees for attending meetings of board and committees of the company for each financial year.

Besides, the company is seeking shareholders' nod for a basic/consolidated salary of Rs 12 lakh per month for its CEO and Wholetime Director Sanjiv Puri.

Puri, who has been the chief executive from February 2017 would also get a performance bonus.

This would be "not exceeding 300 per cent of basic/consolidated salary, payable annually for each financial year, as may be determined by the board," said ITC in a filing to BSE.

His perquisites per annum would be limited to Rs 15 lakh, it added.

"The other terms of remuneration of Puri, as approved by the members at the 105th AGM on July 22, 2016, remain unchanged," it added.

Image: YC Deveshwar. Photograph: Jayanta Shaw/Reuters.