Two proxy advisory firms – Stakeholders Empowerment Services (SES) and Institutional Investor Advisory Services India (IiAS) have urged Raymond stakeholders to vote against Gautam Singhania being appointed as executive chairperson. They expressed their concern over remuneration policies and potential “reputational risks”.
Raymond is seeking shareholder approval to appoint Gautam Singhania as Executive Chairperson for five years, with e-voting set to conclude on 4th December. Singhania currently holds executive roles at both Raymond and Raymond Lifestyle.
Proxy advisor SES has raised concerns over the company’s decision to appoint Singhania as executive chairperson before obtaining board approval. They cited several issues, including his “excessive time commitments” due to managing two full-time roles, the lack of a cap on his variable pay and commission and insufficient clarity on plans for business restructuring. SES also said that no individual should hold more than one full-time executive position unless the companies are in similar industries.
Additionally, IiAS, another advisory firm, pointed out that Raymond has failed to disclose details about commissions payable to Singhania.
Meanwhile, Singhania is facing personal challenges, as his wife, Nawaz Modi, has filed for divorce and accused him of domestic violence, claiming he has misused company funds for personal purposes.
