IndiGo seeks shareholder nod for payment of salary to CEO Ronojoy Dutta

IndiGo’s chief executive officer Ronojoy Dutta, who recently took a 35 per cent pay cut, was paid Rs 11.4 crore in salary for FY2020, the company disclosed in its latest annual report.

InterGlobe Aviation, the company which runs IndiGo, has sought shareholder nod for Dutta’s appointment as whole time director and CEO and remuneration payable to him for three years including FY20. Approval from shareholders has been sought by way of a special resolution which will be put to vote at the company’s annual general meeting on September 4.

Dutta, an aviation industry veteran, joined IndiGo as a consultant and was appointed as its CEO in early 2019. He took charge as the whole time director in January. Earlier, Dutta served as president of Sahara Airlines and United Airlines.

According to the 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.

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In FY2020, Dutta received a total remuneration of Rs 11.4 crore in his role as CEO and whole time director. “Besides

the remuneration paid to him during FY 2020, 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.

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

IndiGo made a pre tax loss of Rs 275 crore in FY20 largely due to a sharp reduction in air travel in in Q4FY20.