Apollo Tyres To Seek Shareholders’ Guidance For Managing Director’s Salary
Apollo Tyres Ltd. today said that the board will seek shareholders’ guidance and independent counsel regarding the compensation for its managing director Neeraj Kanwar, whose reappointment was rejected by shareholders last month.
The company’s board, which met on Oct. 1, however expressed “unanimous approval” for his leadership. “The board will now seek shareholder guidance and independent counsel, on a compensation level commensurate with the position,” a company spokesperson said.
Once this process is complete, it will re-nominate Kanwar to be reappointed as MD, effective May 28, 2019.Apollo Tyres Spokesperson
Last month, minority shareholders of the company rejected the reappointment of Kanwar as the MD. Kanwar is also the vice-chairman of Apollo Tyres Ltd. In 2017-18 he received Rs 44.64 crore as compensation, up from Rs 30.89 crore in 2016-17.
The special resolution for Kanwar’s reappointment was not passed as the votes cast in favour were less than three times the number of votes cast against, a regulatory filing by Apollo Tyres said last month.
The board has faith in Kanwar, according to the spokesperson. Kanwar has spearheaded Apollo Tyres’ growth in India, taken the brand onto the world stage, and grown its market capitalisation around 700 percent since his appointment, the spokesperson said. “The board has full confidence in Kanwar to continue Apollo's sustainable development and expansion.”