Eicher Motors has announced the re-appointment of Siddhartha Lal as Managing Director with effect from 1 May 2021. The development comes after the company’s shareholders rejected the proposal a week ago. The decision was taken at the 39th AGM on 17th August 2021. The Board will now go back for shareholders’ approval through a postal ballot.
Last week, the shareholders had voted against the proposal mainly due to the proposed increase in Lal’s remuneration package.
Given the background of actual remuneration paid to the Managing Director in preceding years, the Board has now approved a revised remuneration structure for the Managing Director, with a maximum cap of 1.5 percent of profits, the company said.
Also read: Vinod Dasari steps down as Royal Enfield CEO
“The remuneration increase in FY2021 is in line with the average 9.7 percent increment given to all company employees for the year. The median, which is a measure of central tendency, is impacted by entry and exits of employees,” Eicher Motors Independent Director and Chairperson of the Nomination and Remuneration Committee Manvi Sinha noted.
In related news, Vinod K Dasari earlier this month stepped down as the chief executive officer (CEO) of Royal Enfield and as executive director on the board of Eicher Motors with effect from August 13.
Dasari’s decision to move on is to dedicate time and energy to pursue his passion and ambition in affordable healthcare. He recently set up and inaugurated a not-for-profit hospital in Chennai and intends to commit his time towards the cause of building affordable and accessible healthcare facilities.
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