Vedanta may Face Investor Ire Over Bonuses to Top 3

Co seeks nod for raising pay packages of Agarwal brothers & CEO Mehta

Billionaire Anil Agarwal may face problems on July 27 when he addresses shareholders at the annual general meeting of his London-listed mining company Vedanta Resources. The UK-based pension fund advisory PIRC and Aviva Investors, a shareholder in Vedanta, have urged members to oppose the resolution that seeks approval to award bonuses to three executives of Vedanta, including chairman Anil Agarwal. The mining major has sought shareholders' nod for raising the total remuneration for Agarwal by 26% to £1.7 million. The company has also proposed to increase deputy executive chairman Navin Agarwal's pay by 39% to about £1.4 million and chief executive Mahendra Mehta's pay package by 52% to £482,000. 

Aviva which owns 0.3% in Vedanta, has said it would withhold approval for these resolutions. Investor advisory PIRC said the bonus payouts which are linked to safety issues, are "contradictory" as the approval is sought for a period when over 26 employees of Vedanta were killed in various accidents. 
In a report communicated to Vedanta shareholders, PIRC said: "The bonus awards are dependent on effective stakeholder management, which resulted in recognition and achievement of awards in corporate social respon sibility, safety, quality, business excellence and best-employer status. In light of the loss of 26 lives occurring across group operations and projects, it is not clear how the award of bonuses can be reconciled with stated policy." 
A Vedanta Resources spokesperson declined to comment on the issue. 
The London-listed mining major last year faced protests from environmental activists who opposed Vedanta's plans to mine for bauxite on a hill considered sacred by tribals in Orissa. Aviva was also part of the protests started to stop mining activity in Niyamgiri.The project was later cancelled by the government. 
Sterlite Q1 
Net Jumps 62% 
NEW DELHI Sterlite Industries, part of Vedanta Resources, on Monday said its fiscal first quarter net profit surged 62% due to higher refining fees and firm metal prices. The flagship of Vedanta Resources, which is the largest copper producer in the country, said profit in the April-June period rose to . 1,640 crore, compared with . 1,010 crore last year. Its revenue in the same period was up 66% to . 9,820 crore. 
On a standalone basis, Sterlite Industries net profit was down 18% to . 343 crore for the first quarter, while revenue was up 31% to . 4,562 crore. Sterlite scrip ended 2% up at . 172.25 on BSE. — Our Bureau

Anil Agarwal