Apollo Tyres’ promoters Neeraj and Onkar Kanwar agree to take 30% pay cut
Apollo Tyres on Tuesday said both its promoters Neeraj Kanwar and Onkar Kanwar will see a reduction in their compensations for FY19. The company has revised the proposal resulting in a 30 percent reduction in the promoters' compensation.
This comes as a big win for minority shareholders of Apollo Tyres in the Neeraj Kanwar case. There had been a glaring disparity in the compensation of Neeraj Kanwar compared to his peers which led to a lot of the minority shareholders to vote against his reappointment for a tenure of five years.
According to company’s annual report, the total compensation of Apollo Tyres promoters, Neeraj Kanwar and Onkar Kanwar, last year was almost Rs 88 crore which is very close to the maximum ceiling permitted under the Companies Act.
The company has also put certain rules in place to appease the minority shareholders. It said that there will be a cap on the total promoter compensation which will be set at 7.5 percent of profit before tax (PBT).
This cap of 7.5 percent may further be reduced over a period of time. The performance based remuneration will be targeted at 70 percent of compensation and annual increments for promoters will be in-line with senior professionals.
First Published: Nov 13, 2018 9:57 PM IST
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