Petronet LNG is seeking shareholder approval to continue its profit-linked commission for directors for another five financial years, even as the company prepares for a change at the top management level.
The LNG importer has proposed retaining a ceiling of 1% of annual profits for director commissions from FY27 through FY31. The payout will be divided among eligible board members in proportions determined by the company's board.
The proposal comes after Petronet's existing approval, covering FY22 to FY26, reaches the end of its term. The company has cited its healthy financial position as the reason for seeking another five-year approval.
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Petronet's latest remuneration figures show that Managing Director and CEO Akshay Kumar Singh and other whole-time directors received Rs 26.5 lakh each as profit commission in FY26. Independent directors received Rs 10 lakh each, apart from sitting fees.
The company said these payments remained below the maximum amounts permitted under the Companies Act. In FY26, the overall maximum commission eligibility stood at Rs 79.5 lakh for whole-time directors and Rs 55 lakh for independent directors.
Petronet reported Rs 3,843 crore in net profit for FY26, compared with Rs 3,926 crore a year earlier. Revenue declined to Rs 43,495 crore from Rs 50,980 crore.
Singh's total remuneration increased to Rs 3.64 crore during FY26 from Rs 3.03 crore in FY25.
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The proposed commission arrangement comes as Petronet approaches another management transition. Singh, who became CEO in 2020, is scheduled to retire in May 2027 following an extension. The company has already begun the process of finding his successor.
Petronet is jointly held by Indian Oil Corporation, GAIL, ONGC and BPCL, each owning 12.5%.
(With PTI Inputs)
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