Eicher Motors on Monday said it has ‘unanimously’ decided to re-appoint Siddhartha Lal as Managing Director of the company with effect from May 1, 2021, with changes in his remuneration package, a week after the company’s shareholders rejected the proposal.
The Board will now go back to shareholders for approval through postal ballot, it added.
Last week, the company’s shareholders had rejected the re-appointment of Lal as Managing Director. The shareholders had voted against the proposal mainly due to the proposed increase in Lal’s remuneration package.
“The primary concern with investors was not Siddhartha’s reappointment as Managing Director or the proposed compensation; it was the lack of clarity regarding the enabling provision that potentially allowed payment of remuneration up to 3 per cent of profits,” Eicher Motors chairman S Sandilya said.
The Board has now approved a revised remuneration structure for the MD, with a maximum cap of 1.5 per cent of profits, the firm said.