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Tulsi Tanti, chairman of Suzlon Energy, the Pune-based wind power multinational corporation, was reappointed by the company's shareholders as managing director for the next three years, it was announced on Thursday.
The decision was taken via postal ballot from shareholders, who voted approval for an increase in his annual salary to Rs 3 crore from the current Rs 2 crore. The announcement came a day after proxy advisory firm Institutional Investor Advisory Services (IiAS) advised against the appointment, due to Suzlon’s weak performance.
Suzlon had gone for corporate debt restructuring (CDR) last year, for loans of Rs 9,000 crore. Its current total debt is around Rs 15,000 crore. The company had gone in for a debt recast after it defaulted on foreign currency convertible bonds (FCCBs) worth $200 million, in October 2012.
“Despite the tough times, the company has managed to retain its prized customers and he remains sanguine about bringing a positive turnaround in the future,” Suzlon stated in an announcement on the re-appointment. IiAS was against the pay rise to Tanti as well. It said any such increase should be linked to improvement in performance. “Under Tulsi Tanti’s leadership, the company’s performance has continued to falter and the company is now under a CDR programme. IiAS believes the promoters’ interests will also be served by bringing in new management,” it had stated on Wednesday.
