Raymond Lifestyle Limited, a major player in India’s retail market, has named Gautam Hari Singhania as its new executive chairman, according to a report to SEBI.
This move is part of the company’s efforts to bolster its leadership as it nears its 100th year of operations.
13.5% vote against Gautam Singhania
In a recent SEBI filing, it was disclosed that 86.85% of the 4,17,57,480 votes were in favor of appointing Singhania, while 13.15% were against. The special resolution, proposed in a Postal Ballot Notice on November 04, 2024, was approved by the necessary majority.
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With his extensive industry experience, Singhania is expected to drive growth and improve efficiency in his new role. Raymond Lifestyle Limited was listed on the stock exchanges on September 5 after separating from Raymond Ltd, with Singhania continuing to lead both companies.
Shareholders block Gautam Singhania’s appointment
Earlier, Corporate governance advisory firms urged shareholders to vote against Gautam Singhania’s proposed appointment as executive chairperson of Raymond Lifestyle Ltd.
Institutional Investor Advisory Services India (IiAS) had raised concerns over several aspects of the proposal, including Singhania’s remuneration package and the company’s governance practices.
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Singhania, the chairperson and managing director of Raymond Ltd., was seeking reappointment as executive chairperson of Raymond Lifestyle for five years, starting September 1, 2024, with a minimum remuneration commitment for three years. However, the terms of his appointment had raised eyebrows, with a monthly salary ranging between INR 55 lakh to INR 80 lakh, along with allowances for medical reimbursement, leave travel, and retirement benefits, totaling an estimated INR 12.35 crore annually.
IiAS had pointed out that the resolution to appoint Singhania lacks clarity on major issues, such as commission details and performance-linked targets. Furthermore, the proposal did not specify a ceiling limit on Singhania’s total pay, which could exceed 5% of Raymond Lifestyle’s net profit, raising concerns about unchecked salary growth.
Meanwhile, Singhania is currently engaged in divorce proceedings with his wife, Nawaz Modi, who has accused him of domestic violence and misusing company funds for personal benefits. While the board has not commented on these allegations, IiAS has expressed concerns about the possible impact on the company’s governance and reputation.
