Lakshmi Mittal took $ 1.74 mn in salary in 2011

Lakshmi Mittal took $ 1.74 mn in salary in 2011

 Lakshmi Mittal, the Chairman and CEO of the world's largest steel-maker ArcelorMittal, took home a salary of USD 1.74 million in 2011, a hike of over 5 per cent over his 2010 pay cheque.

His daughter Vanisha Mittal Bhatia, also received a pay hike in 2011 as her compensation increased from USD 172,000 to USD 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 USD 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 USD 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 USD 220,000, followed by Antoine Spillmann (USD 213,000), Wilbur L Ross, Jr (USD 194,000), Jeannot Krecké (USD 187,000), HRH Prince Guillaume de Luxembourg (USD 186,000), Suzanne P Nimocks (USD 179,000), Vanisha Mittal Bhatia (USD 174,000), Bruno Lafont (USD 126,000).

François Pinault's compensation for the year 2011 stood at just USD 11,000 as he has resigned on January 25, 2011.

The total compensation paid in 2011 to members of ArcelorMittal's senior management (including Lakshmi N Mittal in his capacity as CEO) was USD 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 USD 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 per cent (promotions not included) effective April 2011, while the base salary of the CEO was increased by 3 per cent effective from April 2011.

In 2011, USD 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 December 31, 2011, the annual report said.