High stock prices take director remunerations over legal limit

Mumbai: A 70% Sensex climb should be glorious news for India Inc top managers with ESOPs, or employee stock ownership plans. But in a case of too much of a good thing, the sharp rise in ESOP values is taking many director remunerations over the legal limit at the time of exercising these options.The limit is set at 11% of net profits for remuneration of a public company’s directors under Section 197 of the Companies Act. Once that limit is