Date:29/08/2008 URL: http://www.thehindubusinessline.com/2008/08/29/stories/2008082950971000.htm

Back DLF chief takes home Rs 7.9 cr as remuneration in FY08

Mr K.P. Singh

Moumita Bakshi Chatterjee

New Delhi, Aug. 28 Real estate baron and Chairman of India’s largest realty firm DLF, Dr K.P. Singh, took home close to Rs 7.9 crore in overall remuneration for the year ended March 2008, double the remuneration for the previous year, in absolute terms.

This included salary, benefits, perks, and allowance, as well as commission (based on net profit). While there was no change in salary, and only a marginal change in benefits, perquisites, and allowances, the doubling of the overall compensation level was largely on account of increase in ‘commission’, which depends on profits of the company and can change year on year, company officials pointed out.

According to the DLF annual report released earlier this week, Dr Singh’s remuneration included Rs 30 lakh in salary, Rs 18.78 lakh as benefits, perks and allowances and Rs 7.50 crore as commission during FY08.

last year’s tab

In comparison, the previous year’s annual report pegs the FY07 overall remuneration at Rs 3.42 crore comprising Rs 30 lakh in salary, Rs 12.10 lakh in benefits, perquisites and allowances and Rs 3 crore in commission.

DLF – whose public offer hit the market in June last year — had notched a 306 per cent jump in its consolidated net profit for FY08 to Rs 7,856 crore from Rs 1,934 crore in FY07. According to back-of-the-envelope calculations, Dr Singh’s ‘commission’ works out to 0.15 per cent of net profit in FY07, whereas in FY08, it was only 0.09 per cent of the net profit.

During FY08, DLF’s Vice-Chairman, Mr Rajiv Singh’s overall package was about Rs 8.27 crore compared to Rs 7.75 crore a year ago. While Mr Rajiv Singh’s commission stood at Rs 7.5 crore, the salary stood at Rs 60 lakh, and Rs 17.17 lakh came by way of benefits, perks and allowances.

share sale

In its latest annual report, the company has also has sought shareholders’ approval to raise up to Rs 10,000 crore by selling shares to institutional investors. The New Delhi-based company said in its annual report that it expected to complete the share sale within 12 months of getting shareholder approval. “This is just an enabling resolution so that we can raise the money as and when we need,” a DLF spokesman said.

DLF had raised $2.25 billion in its initial share sale last year. In July, the company said it would spend up to Rs 1,100 crore to buy back up to 2.2 crore shares following a stock market slide.