Apollo Tyres Board to Seek Fresh Approval

Mumbai:- The board of Apollo Tyres will be approaching shareholders for a fresh approval of MD Neeraj Kanwar's compensation, an issue that had irked a section of the investors at the company's last AGM and led them to vote against his reappointment.
In a meeting held on Monday, the board backed Kanwar's leadership and decided to discuss afresh the issue of reholders. After that, it will re-nominate Kanwar to be re-appointed as MD, with effect from May 28 next year.
"The board has reiterated it's unanimous approval of Neeraj Kanwar's leadership," the company told stock exchanges. "The board will now seek shareholders guidance and independent counsel on a compensation level commensurate with the position. Once this process is complete, it will re-nominate Neeraj Kanwar to be re-appointed."
The company is most likely to go for a second round of Voting with shareholders, after taking up the matter of his salary with them and with the Nomination and Remuneration Committee. This panel is headed by chairman Onkar S Kanwar.
"They should use this time judiciously in getting external consultants to give their view on his compensation," Amit Tandon, founder at Institutional Investor Advisory Services(IiAS), told "I don't think any of the investors wanted him to step down: The issue was the compensation- rather, pay versus performance. If the company get a fix on this, the issues around the appointment shall take care of themselves."
In the company's AGM on August 1, minority shareholders had voted against Kanwar's re-appointment as the votes ast in favour (72.72%) than three times the number of votes cast against (27.28%) the resolution.