Proxy advisors call for Rashmi Saluja's ouster from Religare; co backs her
Subscribe to enjoy similar stories. Two leading proxy advisory firms have recommended Religare Enterprises investors Ltd (REL) to vote against giving a fresh five-year term on the company's board to chairperson Rashmi Saluja, further turning the odds against her re-appointment that was already hanging in the balance amidst her ongoing feud with the company's largest shareholders, the Burman family.
Religare has issued a rebuttal to the opinion of the proxy advisors, standing behind Saluja. Justifying their call for Saluja's ouster, proxy advisors InGovern and Institutional Investor Advisory Services (IiAS) said that the protracted battle between the Saluja-led management and the Burman family and the resultant litigation could be a distraction for the company's board.
"The various legal disputes and police cases may be potential distractions to the board and to her in her ability to execute her responsibilities as Executive Chairperson of the company," the IIAS report read. InGovern also raised concerns over her compensation of almost ₹69 crore a year, which it said was much higher than industry peers.
"The ongoing scrutiny of Religare raises questions about the effectiveness of governance under her leadership, which reflects poorly on her oversight and governance capabilities," read the InGovern report released over the weekend. "There are also concerns about her compensation practices and adherence to regulatory guidelines regarding executive remuneration." The proxy advisors' opinion was also influenced by the episode of Religare subsidiary Care Health Insurance issuing stock options to Saluja despite a denial from Insurance Regulatory and Development Authority of India (Irdai).
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