Cairn India MD Dhir tops elite pay club

MUMBAI: Rahul Dhir, managing director and chief executive officer (CEO) of Cairn India, is expected to get his final lot of 22.38 lakh of company’s shares soon, making him richer by Rs 85 crore. The stock options will elevate Dhir to the top of the salary league tables among non-promoter chief executives in India, replacing the current numero uno Hindalco’s managing director Debu Bhattacharya, who earned a total package of Rs 17.3 crore in FY11.
Interestingly, this comes at a time when the institutional shareholders forced its erstwhile promoter Cairn Energy Plc to drop Rs 20 crore or 2.5 million pound share reward for its chairman Sir Bill Gammell for concluding the $8.5 billion deal with Vedanta Resources.
Dhir, 46, a name unheard in Indian corporate houses five years ago, is an India-born British national who joined Cairn India as its MD & CEO in 2006 and was given 67 lakh shares under the ‘Senior Management plan 2006’ at price of Rs 33.7, now valued over Rs 250 crore besides his salary of Rs 12.3 crore, making him India’s top paid professional CEO.
Dhir got the first lot 22.38 lakh shares in January 2007 for successful listing the firm on the Indian exchanges as Cairn India raised over $1.2 billion, India’s biggest initial public offering then. He bagged the next lot of 22.38 lakh shares in July 2008, becoming the top 20 shareholders of Cairn India with 44.7 lakh shares or 0.24% stake as on March 31, 2009, according to Cairn India’s annual report.
Cairn India, which produces 165,000 bpd from its various fields in India, plans to close this financial year with target of 1,75,000 bpd by next month, the company said last month, making Dhir eligible to get his final lot of 22.38 lakh Cairn India shares. A Cairn India spokesperson confirmed the move that the company will reach its peak production target of 1,75,000 bpd next month but declined to comment on Dhir’s ESOP. Dhir, a Wharton graduate, has been given an extension of another five year to serve Cairn India as its MD & CEO.