Petronet Directors Set to Get 1% Profit Commission for Another Five Years
The proposal will be subject to the requisite corporate and regulatory approvals
Petronet LNG Ltd is seeking approval to extend the payment of profit-linked commission to its directors for another five years, with each eligible director entitled to a commission of up to 1% of the company’s net profits, subject to applicable provisions and approvals.
The proposal is part of the company’s remuneration framework for its directors and is expected to come up for consideration by shareholders.
The commission is linked to the company’s profitability, meaning the payout would vary depending on the profits generated during the relevant financial year. The arrangement is intended to provide a performance-linked component to directors’ remuneration.
Petronet LNG, one of India’s leading importers and regasifiers of liquefied natural gas (LNG), operates the Dahej LNG terminal in Gujarat and the Kochi LNG terminal in Kerala. The company plays a significant role in supplying imported LNG to India’s gas-consuming industries.
The proposed continuation of the commission comes as Petronet seeks to maintain its existing remuneration structure for its board-level leadership.
The proposal will be subject to the requisite corporate and regulatory approvals. The exact payout in any financial year would depend on the company’s profits and the applicable limits prescribed under the Companies Act and other relevant regulations.
