Nippon Life India CEO Sundeep Sikka’s Pay Package Opposed By Some Institutional Shareholders
BloombergQuint is tracking institutional investor votes this proxy season—especially the proposals they vote against.
Nippon Life India Asset Management Ltd.’s remuneration plan for chief executive Sundeep Sikka, which could’ve been seen him take home more pay than prescribed, saw the majority of the institutional votes cast against it.
Over 83% of the institutional votes that were cast were against the proposal, according to data compiled by the Institutional Investor Advisory Services showed. While institutional shareholders hold 13.3% stake in the company, only 42% of them cast their vote in the postal ballot.
The proposal for Sikka’s remuneration was still passed with 94% of the total votes being in its favour. The voting took place on April 17.
According to Nippon Life’s notice for the postal ballot, Sikka's pay for financial year 2020-21 would’ve been well within the limits prescribed under the Companies Act, 2013. However, including the stock options that had been vested with Sikka, some of which he had already exercised, his total pay was likely to exceed the limits under Section 197 of the Act that are based on current profit estimates of the firm.
Sikka, who is also a nominee director of the promoter firm Nippon Life Insurance Company, took home a total remuneration of Rs 7.02 crore in FY20. He had received Rs 10.56 crore in FY19 and Rs 5.94 crore in FY18, including all allowances and stock options.
Rossari Biotech Vote
Elsewhere at Rossari Biotech Ltd.’s extraordinary general meeting, almost half of the institutional votes cast were against proposals related to the company's employee stock option plan.
Over 45% of the institutional votes cast were against two proposals to approve a pre-IPO employee stock option plan for 2019. Notably, only 54.4% of the institutional shareholders cast their votes.
Another proposal to approve giving loans, guarantees or securities of up to Rs 100 crore to Rossari's subsidiaries or associate companies saw 45.6% of the institutional votes cast against them.
All three proposals were passed with 94% of the total votes in favour.