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NEW DELHI: After an embarrassing episode final week that noticed shareholders reject the re-appointment of Siddhartha Lal as MD of Eicher Motors over objections to his remuneration clause, the corporate board on Monday ‘unanimously’ determined to reappoint him to the place with impact from Might 1, however after saying modifications to his remuneration bundle.
The corporate mentioned that the board of administrators on Monday mentioned the result of the thirty ninth annual normal assembly held on August 17, 2021, the place Lal’s re-appointment had been rejected.
“The Nomination and Remuneration Committee (NRC) of the corporate has thought-about all of the elements, together with inputs from varied stakeholders together with institutional buyers earlier than recommending remuneration for key managerial individuals. The first concern with buyers was not Siddhartha’s reappointment as MD or the proposed compensation; it was the shortage of readability concerning the enabling provision that probably allowed cost of remuneration as much as 3% of earnings,” Eicher Motors chairman S Sandilya mentioned.
The corporate mentioned that the board of administrators on Monday mentioned the result of the thirty ninth annual normal assembly held on August 17, 2021, the place Lal’s re-appointment had been rejected.
“The Nomination and Remuneration Committee (NRC) of the corporate has thought-about all of the elements, together with inputs from varied stakeholders together with institutional buyers earlier than recommending remuneration for key managerial individuals. The first concern with buyers was not Siddhartha’s reappointment as MD or the proposed compensation; it was the shortage of readability concerning the enabling provision that probably allowed cost of remuneration as much as 3% of earnings,” Eicher Motors chairman S Sandilya mentioned.
During the last 4 years, the corporate has had the identical restrict of three%, however in actuality have paid solely a fraction of that quantity, he added.
“The precise remuneration throughout FY2021 was at 1.04% of earnings, with the previous years being at a decrease share,” Sandilya mentioned.
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