Y C DEVESHWAR GETS TWO-YEAR EXTENSION
Diversified conglomerate ITC has extended the tenure of its Chairman Yogesh Chander Deveshwar, for two years. There solution will be placed before the company’ s shareholders for approval at the forthcoming annual general meeting( A GM ). The A GM notice stated, given the increasing size and complexity of the organisation, the Nomination& Compensation Committee and the board were of the view that it would be in the best interests of the company for D eve sh war to continue in his capacity as chairman for some more time.
Diversified conglomerate ITC has extended the tenure of Chairman Yogesh Chander Deveshwar by two years. The resolution will be placed before the company's shareholders for approval at the forthcoming annual general meeting (AGM).
The AGM notice stated given the increasing size and complexity of the organisation, the Nomination & Compensation Committee and the board were of the view that it would be in the best interests of the company for Deveshwar to continue in his capacity as chairman for some more time.
The board at a meeting on May 16, 2018, sought the approval of the members for the re-appointment of Deveshwar as chairman and non-executive director of the company from February 5, 2020, to February 3, 2022.
Deveshwar, at the request of the recommendation committee, accepted the decision. He would also play mentor to the executive management for an orderly transition.
Earlier, at the AGM of 2016, shareholders had approved his appointment for three years with effect from February 5, 2017.
Again, at last year's AGM, shareholders had agreed on additional remuneration and benefits for Deveshwar in view of his enlarged role.
In terms of the recently notified Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the consent of shareholders by way of special resolution is required if the remuneration payable to a single non-executive director in that year exceeds 50 per cent of the aggregate remuneration payable to all the non-executive directors taken together.
Accordingly, ITC is seeking shareholders' approval once again for his additional remuneration and benefits. The monthly remuneration is ~10 million, apart from other perks.
ITC started writing the transition script early as Deveshwar's successor had big shoes to fill. When Deveshwar took over as executive chairman, the revenue of the company was less than ~52 billion and profit before tax was ~4.52 billion. Today, the figures have grown to ~464 billion and Rs 179 billion, respectively.
Last February, when Deveshwar slipped into a nonexecutive role, ITC split the portfolio of CEO and chairman for the first time. Sanjiv Puri was elevated as CEO and executive director.