PVR Shareholders reject special incentives to Chairman and Joint MD
In recent time, Indian corporate sector has witnessed various instances of shareholder activism led by institutional investors and proxy advisor firms which may be seen as emerging trend for strengthening corporate governance. In latest case, Shareholders of India's largest multiplex operator PVR rejected two resolutions to approve special incentives for its Chairman & Managing Director and Joint Managing Director for FY22. About 52% of the institutional investors and 25% of the non-institutional public investors voted against proposals of special incentives for the two senior executives of PVR. About 64% of the shareholders voted in favour of the resolution. A special resolution requires the approval of shareholders holding at least 75% of the total equity.
A proxy advisory firm raises governance concerns against the nomination and remuneration committee (NRC) as the company on one side is compensating the executive director's performance by payment of special incentive and on another side no such plan for the employees of the company despite consistent pay cuts since last two financial years.
