New Delhi: Cairn India has proposed a near 40 percent pay hike for its interim chief executive P Elango, a move that is being seen as mining billionaire Anil Agarwal's increasing faith in him.
Cairn's new promoter, Agarwal-controlled Vedanta Resources, had named Elango as the firm's interim CEO after the exit of high profile Rahul Dhir in August last year.
It was at that time announced that Elango, who until then was Cairn's Director for Strategy and Business Services, was an interim arrangement and search for Dhir's successor was underway.
Elango, who will turn 52 in July, has successful steered the firm against all odds and doomsday predictions, is now being rewarded with a handsome hike in salary and allowances.
Cairn in a notice to shareholders said basic salary of Elango is being proposed to be hiked from July 1 to Rs 870,000 per month from Rs 644,000 during the first half of 2013.
Special allowance is being increased from Rs 565,000 per month to Rs 389,000. He will also be entitled to house rent allowance of up to 40 percent of basic salary, the company said in the notice.
The firm's annual general meeting (AGM) has been convened on July 24 in Mumbai to approve accounts for 2012-13 fiscal and Elango's package.
"Elango is a Cairn veteran, who has played a key role in the growth of Cairn India into a leading Oil & Gas company in India. Over a career spanning over 26 years in upstream oil and gas sector, Elango has held several leadership roles in different areas of the business and is currently a recognised leader in the industry in India," the notice said.
While Elango was appointed interim CEO at the end of August last year, he was appointed a whole time director of the company on January 21 this year on his then existing remuneration. "No increment was provided to him at that time," the notice said.
"However, as part of the annual increment and performance appraisal system of the Company, the Remuneration Committee at its meeting held on 22 April, 2013 has approved the increase in remuneration of Elango effective July 1, 2013," it said.
Besides salary and special allowance, he would also be entitled to "performance incentive (of) up to a maximum of 100 percent of salary, perquisites and allowances" and "stock options".
Dhir, who was the face of Cairn India since its listing in 2006, was paid Rs 10.66 crore in salary and other incentives for April-August stint in the company during 2012-13. He got Rs 51.77 crore in 2011-12, according the company's Annual Report for 2012-13.
In 2012-13, Dhir got Rs 6.41 crore bonus in addition to the remuneration and incentives.