Former Gujarat NRE Coking Coal chairman Arun Jagatramka looks set to get a massive pay cut next year, after he pocketed more than $1.3 million from his company in 2013.
Despite his Illawarra mining company failing to pay workers’ wages for two months and owing millions of dollars to businesses and government agencies, Mr Jagatramka was paid a total of $1,332,337 in 2013.
Not counting share payments, salary sacrifices and non-monetary benefits, his cash salary and fees increased more than 53per cent from $664,903 in 2012 to $1.02million in 2013, documents lodged with the sharemarket last week show.
According to a table showing the remuneration for the company’s four directors – contained within a shareholder prospectus posted to the Australian Securities Exchange – Mr Jagatramka’s proposed salary for 2014 is just $79,025.
The table also shows he has already been paid $503,789 for next year.
The company previously promised no staff were being paid while workers’ wages were on hold.
The documents do not say whether Mr Jagatramka will now have to pay back this amount, or whether his proposed salary will be paid in addition to what he has already received.
It is proposed new chairman Jasbir Singh be paid $114,450 – or about 11per cent of the former chairman’s wage – for 2014. He has not been paid so far.
It is not clear whether the figures shown are for the financial or calendar years.
As well as losing a large chunk of his wage, the former chairman could end up with a smaller share of the company he spearheaded for nearly a decade after the latest issue of new shares.
Jindal Steel has already invested $58million through an advanced version of the offer now open to all shareholders.
The Gujarat Group – which includes Mr Jagatramka – is eligible to invest a further $46.9million in the Illawarra mines by buying more than 586million new shares through the offer.
If no other shareholders choose to take up the ‘‘highly speculative’’ and ‘‘not risk free’’ offer, Jindal Steel will have more than 65per cent of voting power.