Vodafone Idea Managing Director and CEO Ravinder Takkar will not receive any compensation during his current three-year term, according to a company proposal.
Vodafone Idea Limited (VIL) may bear the expenses incurred by Takkar for the company’s business, the notice of the company’s 25th annual general meeting said.
The AGM is scheduled for September 30.
VIL appointed Takkar as its CEO and CEO following Balesh Sharma’s resignation from the position.
According to the notification, Takkar has been appointed CEO and CEO for a three-year term beginning August 19, 2019. He will be given “zero pay.”
His predecessor Sharma was paid Rs 8.59 crore in remuneration during his tenure and was not entitled to any increase in remuneration during 2019-20.
While other terms of Takkar’s appointment state that “the company may bear all expenses of / for Mr. Takkar related to travel, room and board, entertainment and all other incidental expenses for the company’s business as per the policy of the company, “the ad said.
Takkar will not be “paid session fees for attending meetings of the company’s Board of Directors or any committee of the company,” the notice read.
The company will seek shareholder approval for Takkar’s appointment, among other proposals, at the AGM.
The company will also seek shareholder approval to increase its borrowing limit to Rs 1 lakh crore from Rs 25,000 crore at present.
The loss-making private sector telecommunications company has shared concerns about the financial stress it has been facing and is trying to raise funds for its survival.
According to the government’s claim, Vodafone Idea has outstanding dues of 58,450 crore until 2016-17 of which the company has paid Rs 7,854 crore to the Telecom Department.
VIL has been continuously losing a large number of subscribers.
It was the largest telecommunications service provider in the country as of August 2018 at the time of the merger with 43 million mobile subscribers. The company’s mobile user base has now shrunk to 30.9 million customers.
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