Eicher Motors reappoints Siddhartha Lal as Managing Director

Eicher Motors Board will now go back to shareholders for approval through a postal ballot.

The company said in a BSE filing: “Eicher Motors has reappointed Mr Siddhartha Lal as Managing Director of the company with effect from May 1, 2021, for a term of five years, subject to requisite approvals of the shareholders through postal ballot and the approval of the Central Government in terms of Part I of Schedule V of the Companies Act, 2013, and subject to such other provisions of the Act and SEBI Regulations, 2015, as may be applicable.”

The Board of Directors of Eicher Motors Limited had discussed the reappointment of Siddhartha Lal as Managing Director and his remuneration proposal at the 39th Annual General Meeting (AGM) held on Aug 17, 2021.

Notably, the board of Eicher Motors had approached shareholders once before to allow Siddhartha Lal to continue as the managing director of the company. However, the resolution for his re-appointment was shot down over a proposed salary hike.

At the time, the company had fallen short of the 75 percent vote share that was needed for Lal’s re-appointment and remuneration as around 26.95 percent of the shareholders had voted against the Special Resolution at the AGM.

The company had then released a statement on August 20 that read: “The Eicher Motors board has been informed and we are considering the quick next steps… Since Lal continues to be the director and CEO, there were no changes in the way Eicher Motors is governed and operates.”

Siddhartha Lal’s remuneration for FY21 was Rs 21.12 crore, which included his salary, perquisites, and commission, a 9.97 percent hike from FY20.

Due to the impact of the COVID-19 pandemic outbreak, Eicher Motors’ net consolidated profit for FY21 stood at Rs 1,347 -- the lowest since FY16. During the same period, Lal’s remuneration more than doubled from Rs 9.51 crore in FY16.