Havells India Issues Clarification on CMD Anil Rai Gupta's Remuneration

Havells India Ltd has revealed the numbers of its chairman and Managing Director, Anil Rai to address shareholder concerns over pay parity on the higher side when compared to the salary received by peers.

"FY23 remuneration of Anil Rai Gupta is ~1.8% of net profit (last 4 years average ~1.8%) which is well within the limit of 5% as prescribed in Section 197 of the Companies Act, 2013," the company said in a regulatory filing.

While the element of variable commission in Rai's salary remains unchanged, the percentage increase is commensurate with the size and nature of the business, the company further added in the said filing.

For the unversed, executive compensation and pay packages to senior leaders have always piqued the interest of stakeholders and shareholders in particular. The element of compensation to senior leadership and promoters is a critical part of corporate governance and board compliance. The company law even has sound provisions to regulate the compensation aspect of key managerial personnel which highlights that promoters are seen in a fiduciary position and while they are entitled to healthy compensation, the element of accountability is a quintessential part of their responsibilities to the company.