Shareholders are becoming increasingly sensitive to payment of exorbitant commission and sitting fees to non-executive directors and unconscionably high salaries to executive directors. Shareholders' ire is reflected in the questions raised by them in AGMs.
In the case of IDFC Bank, many shareholders pointed out that enhancing the already high remuneration to directors especially when the company's performance is deteriorating does not make sense. Rajiv B Lall, the Managing Director, responded that he would take what the shareholders permitted. It was not clear whether this was a smart response to silence the vocal and helpless shareholders or a serious and well-meaning response. This was not tested by any shareholder.
Some shareholders suggested that directors on their own should cut down payment to themselves without any prompt from shareholders. Of course, it was all a drama. There was no impact. Accountability of directors, executive or non-executive, continues to be a myth in India.
In the case of IDFC Bank, many shareholders pointed out that enhancing the already high remuneration to directors especially when the company's performance is deteriorating does not make sense. Rajiv B Lall, the Managing Director, responded that he would take what the shareholders permitted. It was not clear whether this was a smart response to silence the vocal and helpless shareholders or a serious and well-meaning response. This was not tested by any shareholder.
Some shareholders suggested that directors on their own should cut down payment to themselves without any prompt from shareholders. Of course, it was all a drama. There was no impact. Accountability of directors, executive or non-executive, continues to be a myth in India.
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