New Delhi: Apollo Tyres said on Wednesday its board would 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 1 October, 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. Once this process is complete, it will re-nominate Kanwar to be re-appointed as MD, effective 28 May 2019," an Apollo Tyres spokesperson said in a statement.
Minority shareholders of the company had last month rejected the reappointment of Kanwar as MD. Kanwar is also the vice-chairman of Apollo Tyres. In 2017-18 Kanwar received ₹ 44.64 crore as compensation, up from ₹ 30.89 crore in 2016-17.
The resolution for “reappointment of Kanwar as MD" was not passed as a special resolution as the votes cast in favour (72.72% ) were less than three times the number of votes cast against (27.28%), Apollo Tyres said said in a regulatory filing last month.
The company said it board reiterated its approval of Kanwar’s leadership.
Kanwar had spearheaded Apollo Tyres’ growth in India, taken the brand onto the world stage, and grown its market capitalisation around 700% since his appointment as MD, the spokesperson said.
“The board has full confidence in Kanwar to continue Apollo’s sustainable development and expansion," the spokesperson added.