Proxy advisors recommended Raymond shareholders to vote against Gautam Singhania
Two prominent corporate governance advisory firms Stakeholders Empowerment Services (SES) and Institutional Investor Advisory Services (IiAS) – have recommended shareholders of Raymond Lifestyle to vote against Gautam Singhania’s appointment as executive chairperson. The proxy advisors cited Singhania's appointment ahead of the board approval, concerns over remuneration policies and potential "reputational risks" as among the key reasons for the recommendation.
The company is seeking shareholders' approval for the appointment of Gautam Singhania as the executive chairman for five years from September 1, 2024, to August 31, 2029. The e-voting, which started on November 5, will conclude on December 4.
As per SES, the company went ahead and appointed Singhania as the executive chairman before getting the board's approval. According to the proxy advisor, "excessive time commitments" due to holding two full-time positions, the absence of an absolute cap on the variable pay and commission, and a lack of clarity on business restructuring are among the reasons for its recommendation.
The lifestyle business of Raymond was demerged into Raymond Lifestyle which was listed separately on September 5. Singhania holds executive positions on the boards of both Raymond and Raymond Lifestyle.
