London: Lakshmi Mittal, the Chairman and CEO of the world’s largest steel-maker ArcelorMittal, took home a salary of $1.74 million in 2011, a hike of over 5 percent over his 2010 pay cheque.
His daughter Vanisha Mittal Bhatia, also received a pay hike in 2011 as her compensation increased from$172,000 to $174,000, as per the company’s annual report. The report, however, did not mention the compensation given to son Aditya Mittal.
Lakshmi Mittal, whose annual compensation has risen from $1.65 million in 2010, is the highest paid member of ArcelorMittal’s board and is way ahead of the second best paid director Lewis B Kaden who received $264,000 in compensation in 2011.
Interestingly, Lewis B Kaden’s salary remained unchanged in 2011, while the pay package for all other directors rose.
Narayanan Vaghul, is the third best paid board member of ArcelorMittal, with a compensation of $220,000, followed by Antoine Spillmann ($213,000), Wilbur L Ross, Jr ($194,000), Jeannot Krecké ($187,000), HRH Prince Guillaume de Luxembourg ($186,000), Suzanne P Nimocks ($179,000), Vanisha Mittal Bhatia ($174,000), Bruno Lafont ($126,000).
François Pinault’s compensation for the year 2011 stood at just $11,000 as he has resigned on 25 January, 2011.
The total compensation paid in 2011 to members of ArcelorMittal’s senior management (including Lakshmi N Mittal in his capacity as CEO) was $16.2 million in base salary (including certain allowances paid in cash, such as allowances relating to car, petrol, lunch and financial services), the annual report said.
Further, ArcelorMittal gave $17.2 million in short-term performance-related variable pay consisting of a bonus linked to 2010 results.
“The bonus linked to 2010 results was paid fully in cash, unlike the bonus linked to the 2009 results which was paid partly in 2009 and partly in 2010, and partly in cash and partly in shared-based compensation,” the company said.
The base salaries were increased by an average percentage of 2.7 percent (promotions not included) effective April 2011, while the base salary of the CEO was increased by 3 percent effective from April 2011.
In 2011, $1.5 million was accrued by ArcelorMittal to provide pension benefits to its senior management.
No loans or advances to ArcelorMittal’s senior management were made during 2011, and no such loans or advances were outstanding as of 31 December, 2011, the annual report said.