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In a relief for Siddhartha Lal, who faced blowback from the shareholders over his reappointment and pay hike, the board of directors of Eicher Motors decided to unanimously reappoint him managing director (MD) with a revised remuneration package.
The decision will be subject to the shareholders’ approval and the board going back to them for fresh clearance through postal ballot, the company said in a stock exchange filing.
The board has approved a revised remuneration structure for Lal, with a cap of 1.5 per cent of profits. This comes after the shareholders voted down the reappointment and pay hike of 10 per cent for Lal in the company’s annual general meeting held on August 17.
The company said the primary concern of the investors was not Lal’s reappointment or the proposed compensation. It was the lack of clarity regarding the provision that potentially allowed paying a remuneration of up to 3 per cent of profits.
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“Over the past four years, we have had the same limit of 3 per cent, but in reality have paid only a fraction of that amount. The remuneration during FY21 was 1.04 per cent of profits, with the preceding years being at a lower percentage,” the statement said.
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