 "Eicher's shareholders rejected MD's re-appointment over salary hike: Report")
Eicher Motors said that its shareholders at the 39th Annual General Meeting (AGM) held on August 17, 2021 have rejected the proposal for re-appointment of Siddhartha Lal as managing director of the company.
The Eicher Motor shareholders have rejected a special resolution to re-appoint managing director Siddhartha Lal for five years with effect from May 1, 2021. The proposal failed to muster shareholders' support at the company's 39th annual general meeting (AGM) on August 17, 2021. Of the total 217.4 million votes cast, around 158.8 million were in his favour while 58.6 million were cast against him.
The shareholders have also rejected the payment of remuneration to Lal. The shareholders, however, approved reappointment of Siddhartha Lal as a director of the company.
As per media reports, Lal's reappointment as MD was voted down by the shareholders over a 10% hike in his salary proposed amid the COVID-19 pandemic when the revenues and profits have been slow.
Lal's salary of Rs 21.13 crore in FY21 was 340 times the average employee salary and grew at a compound annual growth rate of 28% over the past three years, while the company's operating profit and net profit declined by 14% and 8%, respectively, over the same period, reports indicated.
Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles which operates in India's commercial vehicle space.
The company posted a consolidated net profit of Rs 237 crore in Q1FY22 compared with net loss of Rs 55.18 crore in Q1FY21. For the quarter ended 30 June 2021, Total revenue from operations was recorded at Rs 1,974 crore, up 141% compared with Rs 818 crore in the corresponding quarter of FY 2020-21.
The scrip rose 1.12% to currently trade at Rs 2619.50 on the BSE.