Institutional Investor Advisory Services, a proxy advisory firm, has urged Raymond shareholders to vote against the re-election of Gautam Singhania as Chairman and Managing Director, ahead of the company’s AGM to be held on June 27.
IiAS wants the board to remove Singhania and his estranged wife Nawaz Modi, from their positions until their divorce proceedings are completed. Gautam Singhania has been on the Raymond board since April 1, 1990.
Given the allegations of domestic violence and possible diversion of funds, IiAS said the board has not provided any clarity on whether an independent investigation has been undertaken, and if so, what the conclusions were. With both Nawaz Modi and Gautam Singhania continuing on the board in the backdrop of a likely protracted divorce negotiation, it is in the interest of stakeholders to separate the company from the intra-promoter dispute, it said.
Moreover, Singhania’s proposed remuneration is high for the size and complexity of the business, and not comparable to peers. The remuneration structure allows for him to be paid in excess of regulatory thresholds, which based on FY24 profits alone, can be in excess of Rs 35 crore. The board must provide a maximum cap on the remuneration, and not leave it open-ended with headroom for possible excessive remuneration, it said.
Last fiscal, Singhania was paid about Rs 20 crore, almost 500 times higher than the median salary of Raymond’s employees