Tata Power pays Rs 68.4 lakh remuneration to Ratan Tata
New Delhi: Tata Power has paid its Chairman Ratan Tata a total remuneration of Rs 68.4 lakh in the last fiscal, marking an increase of about Rs 6 lakh from the previous year.
As Chairman and non-executive director of the country's largest private sector electricity producer, Tata's remuneration in the year ended March 31, 2012 included sitting fees and commission for the previous year 2010-11 fiscal.
Besides Tata Power, he currently chairs boards of a number of other companies of the salt-to-software conglomerate Tata group, as also its main promoter company Tata Sons Ltd. Later this year, Ratan Tata would be succeeded by Cyrus Mistry, currently Deputy Chairman of Tata Sons Ltd.
As per Tata Power's annual report, Ratan Tata was paid total remuneration of Rs 68.4 lakh in 2011-12 -- including sitting fee of Rs 2,40,000 and commission of Rs 66 lakh.
"(This) commission relates to the financial year ended March 31, 2011, which was paid during the financial year under review (2011-12)," the company said.
In comparison, Ratan Tata was paid sitting fee of Rs 3.6 lakh and commission of about Rs 57.88 lakh in the previous year 2010-11. The commission payment in the year ended March 31, 2011 was related to the financial year 2009-10.
Being a non-executive director, Ratan Tata is not paid any salary by Tata Power.
The total remuneration of the company's Managing Director Anil Sardana was much higher at over Rs 1.89 crore in 2011-12, when compared to the payment made to Tata.
Sardana's pay package included salary of Rs 54 lakh, perquisites were worth little over Rs 71.27 lakh, commission of Rs 50 lakh (related to 2010-11) and retirements benefits to the tune of Rs 14.58 lakh.
Sardana was appointed Managing Director of Tata Power with effect from February 1, 2011.
However, Sardana's total remuneration was lower than some other executive directors.
S Ramakrishnan was paid total remuneration of Rs 2.45 crore, S Padmanabhan got Rs 2.36 crore and B Agrawala, who resigned with effect from November 30, 2011, was paid Rs 2.22 crore in the last fiscal 2011-12.
The company has provided for commission of Rs 11.5 crore as payable to its directors in the accounts for the year March 31, 2012, the distribution of which would be determined later.
The company pays commission of up to one percent per annum of its net profit to its non-executive directors. The commission is paid broadly on the basis of number of meetings attended, role and responsibility as chairman or member of board or committees, as also individual contributions.