InGovern Research has raised a red flag against Religare Enterprises alleging «vested interest» of its Chairman Rashmi Saluja due to excessive remuneration as well as regulatory breaches. In the last 3-4 years, the total valuation of options of Religare Enterprises Ltd (REL) and its subsidiary Care Health Insurance Limited (CARE) to Saluja is over Rs 480 crore, which is in addition to compensation paid at REL, said a report from InGovern.
Shares of CARE were issued to Saluja through ESOPs, despite rejection from IRDAI (Insurance Regulatory and Development Authority of India) and no approval from the shareholders of REL was also taken for that, said InGovern in its report.
Moreover, there was «no disclosure of CARE ESOPs in REL annual report as part of Saluja's compensation,» it added.
A query sent to REL by PTI remained unanswered by the time of filing the story.
The proxy advisory firm suggested, «detailed investigations by IRDAI and SEBI needed on remuneration, conflicts of interest».
A total of 1.05 crore options of REL have been granted to Saluja since her appointment in February 2020 as Executive Chairperson of the financial services holding company, which is valued over Rs 230 crores presently.
While in CARE, where Saluja is a Non-Executive Chairperson has «excessive grants of stock options,» which are valued at over Rs 250 crores, it added.
In CARE, ESOPs of 2.27 crores in number were given to Saluja in January 2022, which was «in contravention of IRDAI regulations» which contemplate the issuance of stock options only to Chief Executive Officers, Whole-time Directors and Managing Directors.