Chanda Kochhar’s fully paid leave raises questions
MUMBAI/BENGALURU: ICICI Bank Ltd’s chief executive Chanda Kochhar’s remuneration will remain unchanged despite her going on an indefinite leave, a fact that has been flagged by proxy advisory firms as reflecting poorly on the lender’s corporate governance.
There was no discussion on the remuneration of the CEO, a ICICI Bank executive said on the condition of anonymity.
Kochhar, who is also ICICI Bank’s managing director, is facing conflict-of-interest allegations and will remain on leave until a committee investigating allegations of impropriety completes its work, the bank said in a statement on Monday.
“It’s tough to digest that Kochhar will be getting full compensation for the period when she is on leave. Yes, she is still the CEO but the Board could have discussed her compensation for the period when she is not at work,” said Shriram Subramanian, founder and managing director of proxy firm InGovern Research.
In 2016-17, Kochhar’s remuneration, excluding a performance bonus, totalled ₹5.58 crore. Additionally, she got a performance bonus of ₹2.2 crore, all of which may not have been paid by the company in the year, according to the company’s annual report. Her compensation for the previous fiscal year is not known. An email sent to ICICI Bank seek-
ing comment went unanswered. Proxy advisers have also criticized the absence of two directors, including the government nominee and an independent director, from the key Board meeting on Monday.
“It does not augur well when some board members recuse themselves from attending crucial board meetings,” said Subramanian.