Business
Petronet seeks 1 percent director commission again
The Hindu BusinessLine··27 Sept
Petronet LNG asked shareholders to keep paying directors a commission capped at 1 percent of annual profits for FY 2026-27 through 2030-31. Shareholders last approved it on September 28, 2021, for FY22 to FY26. In FY26 it paid CEO Akshay Kumar Singh and other directors Rs 26.5 lakh each. Net profit was Rs 3,843 crore on Rs 43,495 crore revenue.
Prism
What It Means For You
- The proposal goes to shareholders at the forthcoming general meeting under Section 198 of the Companies Act.
- Independent directors received Rs 10 lakh each as profit commission in FY26, plus sitting fees.
- The company said actual commissions stayed below the statutory ceiling.
What's Happening
- Petronet wants the 1 percent profit commission framework continued for five more years.
- Singh's total FY26 remuneration rose to Rs 3.64 crore from Rs 3.03 crore a year earlier.
- Earlier similar approvals were granted in 2007, 2011 and 2016, the notice said.
Where the commission ceiling sits
- Section 197 caps non-executive director pay at 1 percent of net profits when a company has a managing or whole-time director.
- In FY26, whole-time directors were eligible for up to Rs 79.5 lakh in commission and independents up to Rs 55 lakh.
- Petronet described the commission share of profit before tax as marginal within Companies Act limits.
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