The 32nd annual general meeting (AGM) of low-cost carrier SpiceJet will be held on December 26 to approve, among other things, the terms of appointment of managing director Ajay Singh. The 51-year-old former promoter of the carrier had taken over the then-ailing airline from Kalanithi Maran in January 2015 and has since then scripted a success story.
The enhanced remuneration and benefits for Singh stem from this very success of SpiceJet, according to the item listed for the AGM.
"Since the company has now been able to generate profits for the full financial year ended March 2016 and each quarter thereafter it will be only justifiable to adequately remunerate Singh for his all-around contribution and full time participation in the affairs of the company," reads the explanation for the resolution seeking higher benefits.
The board of directors (Nomination and Remuneration Committee) at its November 25, 2016 meeting had approved "payment of remuneration of Rs.5,000,000 (Rupees Five Million only) per month as fixed pay (with such component as may be agreed and decided by the Board) and up to two percent of annual net profit of the Company payable upon completion of relevant financial year (subject to a maximum of Rs.90,000,000 (Rupees Ninety Million only) per annum) as variable pay," as recommended by the Nomination and Remuneration Committee on September 7, 2016.
The new terms of appointment will be applicable from April 2016 to May 2018. Singh holds 354,443,450 shares in the company.
The accounts of the company for the financial year 2015-16 will be adopted at the AGM, along with other resolutions, including appointment of independent directors Anurag Bhargava and Harsh Vardhana Singh. The meeting will be held in New Delhi at 10 am.
The SpiceJet stock was trading at Rs 59 on the BSE at around 2.30 pm on Friday.
