Asian Paints, India’s largest paint manufacturer, has received shareholders’ approval for all its resolutions, including the reappointment and remuneration of its managing director and CEO Amit Syngle.
The investors voted in favour of Syngle’s reappointment with a whopping 97.28% of their total votes, while promoters supported the motion with their entire 100% votes. Public institutions supported the resolution with 90.55% of their votes and public non institutions with 99.86% of their total votes, Asian Paints said in a regulatory update.
The voting results were announced following the company’s Annual General Meeting (AGM) held on Wednesday. The e-voting for the resolutions started on June 25 and ended on June 28.
The Mumbai-based company, which is also Asia’s third-largest paints-maker, had sought investors’ approval for reappointment of Syngle and fixing his salary for five years, effective April 1, 2023. This would be after the completion of his present tenure, which ends on March 31, 2023. Syngle was appointed as CEO and MD for three years from April 1, 2020.
The reappointment was earlier approved by the company’s board, based on recommendations of the Nomination and Remuneration Committee (NRC) and audit committee.
On their part, two proxy advisory firms — Institutional Investor Advisory Services (IiAS) and InGovern Research Services -–had recommended shareholders to vote against the reappointment and fixing of Syngle’s remuneration, citing lack of disclosures on salary.
In its response, Asian Paints said the proxy advisory firms’ comparisons were not on a like-to-like basis. The proposed remuneration payable to Syngle, mainly comprises fixed pay (includes basic salary and allowances) and variable pay (includes profit-linked commission and ESOPs) which were approved by shareholders at the company’s 75th AGM.
The proxy report compares the basic salary paid to Syngle in FY20–21 with the proposed remuneration for the period of re–appointment from FY23–24 onwards, which is three years ahead. This is not a like to like comparison considering it includes year-on-year growth based on performance. The stock options proposed to be granted are subject to satisfaction of vesting conditions including achievement of performance targets and service conditions.
In his address to shareholders at the AGM, Asian Paints’ chairman Deepak Satwalekar had backed Syngle’s re–appointment, stating he has “delivered exceptional performance” and propelled the company to become a strong home décor brand.
All other resolutions of Asian Paints – including adoption of financial statements, declaration of final dividend, re-appointment of Malav Dani and Manish Choksi as directors and remuneration for cost accountants – were also passed with requisite majority, it added. The proxy advisory firms had urged investors to support all other resolutions.