Kohli’s sale of Airtel stock routine, says Mittal
14 Mar 2009
Bharti Airtel chairman Sunil Mittal on Friday moved swiftly to soothe investor nerves, which were shaken after chief executive officer and joint managing director Manoj Kohli sold his entire stock in the company. He sent a letter to large institutional investors saying that Kohli had obtained his approval before exercising his stock option.
On Thursday, India's leading cellphone operator had also announced a restructuring of its management team, which led to immediate speculation that all may not be well in the company and that Kohli could be exiting the company.
''The purpose of ESOPs is to use them for creating family assets and not storing them. From time to time, all senior leaders have sold shares to build assets and enjoy the fruits of their hard labour,'' Mittal said in his communication.
"Manoj is one of the finest professionals in the Bharti management team and has helped me shape Bharti Airtel's agenda. He has successfully led one of the most distinguished management teams in India, which has enhanced the company's leadership position year after year,'' Mittal's statement said.
''Manoj has many more stock options, vested and unvested, which he will exercise and enjoy in due course. As per company policy, all insiders need to take permission before sale or purchase of shares, as in this case.''
Mittal added that Bharti has continuously developed and rotated the management team, giving its leaders a chance to get to the next level, and the appointment of Sanjay Kapoor, a Bharti veteran, as deputy CEO, Atul Bindal as president - mobile services, and K Srinivas as joint president - telemedia services was part of this policy.
Mittal said: ''Manoj continues to lead the company as the CEO & joint MD and a member on the board of Bharti Airtel, working directly with me. He is one of the finest professionals in the Bharti management team and has helped me in shaping Bharti Airtel's agenda. He has successfully led one of the most distinguished management teams in India, which has enhanced the company's leadership position year after year.''
