New Delhi: After the embarrassing episode last week who saw shareholders rejected the re-appointment of Siddhartha Lal as MD from Eicher Motors for objections to the Remuneration Clausul, the company’s board on Monday ‘unanimously’ decided to repeat it with its effect with its effect.
May 1, but after announcing changes to the remuneration package.
The company said that the Board of Directors on Monday discussed the results of the 39th Annual General Meeting held on August 17, 2021, where the LAL removal was rejected.
“The Nomination and Remuneration Committee (NRC) of the Company has considered all factors, including inputs from various stakeholders including institutional investors before recommending remuneration for the main managerial people.
The main concern with investors is not the removal of Siddhartha as MD or proposed compensation; it is Lack of clarity regarding possible provisions that have the potential to allow remuneration payments of up to 3% of profits, “said Chairman of Eicher Motors S Sandilya.
Over the past four years, the company has the same limit of 3%, but in reality it only pays a small portion of that number, he added.
“Actual remuneration during FY2021 is at 1.04% of profit, with previous years in a lower percentage,” Sandila said.