Idea MD's yearly remuneration cap doubled to almost Rs 10 crore

Idea Cellular shareholders have agreed to almost double the pay package ceiling of the telecom firm's managing director, Himanshu Kapania, to about Rs 10 crore per annum.

"Increase in remuneration of the managing director... passed unanimously," Idea Cellular informed the BSE on Monday.

The telecom company was reporting the outcome of its extraordinary general meeting (EGM) held on December 26.

Currently, the total pay package of Mr Kapania, who is at the helm of country's third largest telecom operator, is capped at Rs 4.64 crore.

In a notice to its shareholders on December 2, Idea Cellular has sought approval to increase ceilings of Mr Kapania's monthly basic salary to Rs 20 lakh from Rs 10 lakh and monthly special allowance to Rs 20 lakh from Rs 12 lakh.

His performance linked pay is proposed to be hiked to as much as Rs 5 crore annually from Rs 2 crore.

Together, the total annual sum adds up to Rs 9.80 crore.

"Significant growth in the size and complexity of the business of the company, remuneration structure in the telecom industry...his profile, position, experience, qualification and above all his outstanding performance justifies suitable increase in the remuneration payable to the MD," the company has said in a note.

Mr Kapania was appointed as the managing director of the company on April 1, 2011 for a period of five years and as per the terms of appointment, his annual increment to the remuneration falls due on July 1 every year.

Besides, the company shareholders' have also approved hiking the foreign institutional investment (FII) limit to 49 per cent from existing 24 per cent level.

Shares in Idea, on Monday, ended at Rs 169.85 apiece on the BSE, up 1.43 per cent from the previous close.