Tuesday, August 30, 2022

IndiGo CEO agrees to 2-year non-compete curbs after stepping down in Sep

InterGlobe Aviation CEO Ronojoy Dutta, who will be stepping down next month ahead of his tenure, has agreed to an enhanced two-year non-compete period wherein he will not engage with any business that is similar or in competition with the company.

Dutta is to step down as the Whole Time Director and CEO of InterGlobe Aviation, the parent of the country's largest airline IndiGo, on September 30 whereas his current tenure is till January 23, 2024.

On Tuesday, the company said it will seek shareholders' approval for the remuneration of Dutta for this fiscal "as minimum remuneration in the event of absence or inadequacy of profits".

The e-voting on the proposal will be open from August 31 to September 29 and the results will be declared on or before October 1.

According to the filing, Dutta has agreed to an enhanced non-compete period of two years as against one year that was originally agreed to after stepping down.

Under the non-compete restrictions, "he shall not engage with any business or allied business that is in any way similar, identical or competitive with the business, activities or services of the company, or with customers or suppliers of the company with whom he had any contact during his employment".

Further, the restrictions would apply in the event Dutta is engaged in the Indian (domestic) aviation sector or providing consultancy services to an entity engaged in the Indian (domestic) aviation sector with any airline or potential airline within 4,800 kilometres of India, as per the filing.

Dutta was appointed as CEO in January 2019.

The filing also said that as per the original terms of appointment, Dutta was required to serve a six-month notice period but at the management's request, "he (Dutta) agreed to be relieved by serving 4.5 months of notice thereby foregoing 1.5 months of notice pay".

30/08/22 PTI/Business Standard

To Read the News in full at Source, Click the Headline


Post a Comment