Siddhartha Lal's Re-Appointment As MD At Eicher Motors Rejected By Shareholders Over Salary Hike Proposal

Siddhartha Lal is the current managing director at Royal Enfield. However, at the 39th annual general meeting (AGM), the shareholders decided against the re-appointment of Siddhartha Lal as the MD, as they were against a hike in his remuneration. Reports suggest that the concern was that the increase in Lal's remuneration did not sit well with the company's revenue and profit growth due to the COVID-19 pandemic last year. The quantum of increase in salary wasn't specified and that was a cause of concern for the shareholders as well.

Also Read: New-Gen Royal Enfield Classic 350 Launch On August 27, 2021

(Siddhartha Lal)

The special resolution at the 39th AGM, to re-appoint Siddhartha Lal as managing director along with seeking an increase in his remuneration saw 21,74,67,139 votes being cast in total, with 15,88,49,543 votes being in favour of the re-appointment and increase in remuneration. 5,86,17,596 votes were against the resolution. For a special resolution to pass, the motion needs to have over 75 per cent of votes. In this case, the motion had 73.05 per cent. Reports suggest that Eicher Motors is working to resolve the issue.

Also Read: Eicher Motors Reports Profit After Tax Of ₹ 237 Crore In Q1FY2022

Although, it should be mentioned that the ordinary resolution for Siddhartha Lal to be re-appointed as a director at Eicher Motors was passed with requisite majority. The total votes cast numbered 21,83,28,709 with 18,81,71,326 votes in favour of the resolution and 3,01,57,383 votes against it. The resolution was passed with 86.19 per cent votes in favour.

Also Read: Vinod Dasari Steps Down As Royal Enfield CEO

(Vinod Dasari stepped down as the CEO, Royal Enfield, earlier this month )

These developments come just a week after Vinod K Dasari stepped down as the Chief Executive Officer (CEO) of Royal Enfield and Executive Director of the Board of Eicher Motors with effect from August 13, 2021. B. Govindarajan replaces Dasari at Royal Enfield and has been appointed as the Executive Director, effective August 18, 2021. He was previously the Chief Operating Officer at RE since 2013. The company said that Vinod decided to end his tenure at Royal Enfield for personal reasons, and will commit his time towards building affordable and accessible healthcare facilities.

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