From The Economic Times · ET Online · · 1m 30s
Petronet Proposes 1% Profit Commission for Directors
Petronet seeks shareholder approval to pay directors up to 1% of annual profits for five years.
In brief
Petronet seeks shareholder approval to pay directors up to 1% of annual profits for five years. Petronet LNG Ltd will pay directors up to 1% of annual profits for five years, with shareholders approving the arrangement for FY27-FY31. Originally reported by The Economic Times.
Petronet Proposes 1% Profit Commission
Petronet LNG Ltd, India's biggest gas importer, has sought shareholders' approval to continue paying commission to its directors, capped at 1% of annual profits, for another five years from FY27 to FY31.
Commission Details for FY26
For FY26, whole-time directors received Rs 26.5 lakh each, up from Rs 25.5 lakh in FY25, while independent directors got Rs 10 lakh each.
Financial Context
Petronet reported a net profit of Rs 3,843 crore on revenue of Rs 43,495 crore in FY26, compared with Rs 3,926 crore on Rs 50,980 crore in FY25.
Statutory Compliance
The commission remains below the statutory ceiling of 1% of net profits, with whole-time directors eligible for a maximum of Rs 79.5 lakh and independent directors Rs 55 lakh in FY26.
Director Tenure and Replacement
CEO Akshay Kumar Singh, 65, will superannuate on May 12, 2027, after a 15-month extension until May 2027, with replacement process already underway.
Shareholder Approval History
Shareholders last approved the commission arrangement for FY22-FY26 at the annual general meeting on September 28, 2021, with similar approvals granted in 2007, 2011, and 2016.
The one thing
Petronet LNG Ltd will pay directors up to 1% of annual profits for five years, with shareholders approving the arrangement for FY27-FY31.
