The Eicher Motor shareholders have rejected a special resolution to reappoint Managing Director Siddhartha Lal for 5 years with effect from May 1, 2021. These proposals failed to muster institutional shareholders' support at the company's 39th annual general meeting (AGM) on August 17. Of the total 21.7 crore votes cast, around 15.8 crore were in his favour while 5.8 crore were cast against him.
The shareholders have also rejected the payment of remuneration to Lal. The shareholders were primarily against the company's rationale behind the proposal to hike Lal's salary by 10 per cent in FY21, The Economic Times reported citing sources.
The proposal came amid the Covid-19 pandemic, and low revenues and profit margins. During this period, even the median employee salary in Eicher had risen by only 1 per cent.
According to the calculation by proxy advisory firm Institutional Investor Advisory Services (IIAS), Lal's proposed salary in FY22 could be Rs 23.23 crore, compared to Rs 21.2 crore in FY21, news daily reported, adding that 32 per cent of this is the variable pay.
However, an ordinary resolution seeking Lal's re-appointment as a director on the Eicher Motors' board received the shareholders' approval.
The development comes just a few days after Eicher Motors on August 12 announced that Royal Enfield CEO Vinod K Dasari has resigned from his post. Dasari also stepped down from the post of Director (Whole Time) of Eicher Motors Ltd. The firm has now appointed B Govindarajan as Executive Director - Royal Enfield (Whole Time, Additional Director) of Eicher Motors Ltd.
Eicher Motor share is trading at Rs 2,603.75, up Rs 14.10 or 0.54 per cent, compared to the previous session close of Rs 2,589.65 on the NSE.
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