IndiGo grants ESOPs to CEO despite majority public shareholders vote against it

In the 2020 financial year, the CEO of the largest airline took home a salary of Rs 17 crore, which included a bonus of Rs 5.6 crore. The proposal was cleared by the company board on March 6 and was voted by the shareholders on March 12. The e-voting ended on April 10.

Despite most public shareholders voted against the resolution to grant 185,000 stock options to the Chief Executive Officer (CEO) of InterGlobe Aviation Limited, Ronojoy Dutta, the promoters of the company holding the majority stake passed the resolution.

Indigo's promoters including co-founder Rahul Bhatia and Rakesh Gangwal hold 288 million shares cumulatively which makes up for nearly two-thirds of the voting rights in the company.

Public institutions hold nearly 23 percent of the total shareholding, of which 61.26 percent voted against granting stock options to Dutta. The remaining shareholders belonging to public non-institutions voted in favor of the motion and only 35.75 percent voted against it, disclosures showed.

The proposal was cleared by the company board on March 6 and was voted by the shareholders on March 12. The e-voting ended on April 10.

Dutta has been granted 1.85 lakh shares at Rs 765 per share. He will get the ESOPs over and above his annual remuneration and bonus. In its communication to the exchanges, the airline said the CEO has been paid Rs 8.2 crore till December 31, 2020, as part of his remuneration for the 2021 financial year. This includes a 'committed bonus' of Rs 3.7 crore, the airline said.