Eicher reappoints Lal as MD after revising pay – Times of India

NEW DELHI: After an embarrassing episode last week that saw shareholders reject the re-appointment of Siddhartha Lal as MD of Eicher Motors over objections to his remuneration clause, the company board on Monday ‘unanimously’ decided to reappoint him to the position with effect from May 1, but after announcing changes to his remuneration package.
The company said that the board of directors on Monday discussed the outcome of the 39th annual general meeting held on August 17, 2021, where Lal’s re-appointment had been rejected.
“The Nomination and Remuneration Committee (NRC) of the company has considered all the 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 regarding the enabling provision that potentially allowed payment of remuneration up to 3% of profits,” Eicher Motors chairman S Sandilya said.

Over the last four years, the company has had the same limit of 3%, but in reality have paid only a fraction of that amount, he added.
“The actual remuneration during FY2021 was at 1.04% of profits, with the preceding years being at a lower percentage,” Sandilya said.