New Delhi: After a shameful incident last week in which shareholders rejected the reappointment of siddharth lal As Mohamed NS Eicher Motors On objections to his remuneration clause, the company board on Monday ‘unanimously’ decided to re-appoint him to the post with effect from May 1, but after the announcement of changes in his remuneration package.
The company said the board of directors on Monday discussed the outcome of the 39th Annual General Meeting held on August 17, 2021, which ruled out Lal’s reappointment.
“Nomination and Remuneration Committee (NRCThe Company has considered all factors including inputs from various stakeholders including institutional investors before recommending remuneration for key managerial persons. The primary concern with investors was not Siddhartha’s reappointment as MD or the proposed compensation; It was the lack of clarity about the enabling provision that potentially would have allowed payment of remuneration up to 3% of profits,” said S Sandilya, chairman, Eicher Motors.
The company said the board of directors on Monday discussed the outcome of the 39th Annual General Meeting held on August 17, 2021, which ruled out Lal’s reappointment.
“Nomination and Remuneration Committee (NRCThe Company has considered all factors including inputs from various stakeholders including institutional investors before recommending remuneration for key managerial persons. The primary concern with investors was not Siddhartha’s reappointment as MD or the proposed compensation; It was the lack of clarity about the enabling provision that potentially would have allowed payment of remuneration up to 3% of profits,” said S Sandilya, chairman, Eicher Motors.
Over the past four years, the company has had a similar limit of 3%, but has actually paid only a fraction of that amount, he said.
Actual remuneration during FY 2021 With it being at a lower percentage in previous years, 1.04% was on profit,” Sandilya said.
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