Gautam Hari Singhania has been appointed as the executive chairman of Raymond Lifestyle Limited, following shareholder approval through a Postal Ballot on December 4, 2024. Sunil Kataria has also been named the managing director of the company.
According to the company’s filing with SEBI, 86.85% of votes supported the resolution, while 13.15% opposed it. This marks a significant milestone for Raymond Lifestyle as it gears up for its centenary year, focusing on driving growth and enhancing operational efficiency. Singhania has been leading Raymond as chairman and managing director since September 1990.
Singhania’s appointment is a key part of Raymond Lifestyle’s strategy to capitalise on his vast industry experience and leadership to drive future growth. The resolution formalises his role for a five-year term, aimed at improving operational efficiency and positioning the company for continued success.
Despite shareholder approval, Singhania’s appointment has faced criticism from corporate governance watchdogs, with concerns raised about transparency and reputational risks. The proposal encountered significant opposition from governance advisory firms Empowerment Services (SES) and Institutional Investor Advisory Services India (IiAS), according to media reports. These firms had urged shareholders to reject the resolution, citing governance concerns and potential reputational risks surrounding the decision.
SES, a corporate governance advisory firm, raised several concerns about Singhania’s appointment, noting that his role was publicly announced before receiving formal board approval, which raised questions about the company's decision-making process.
IiAS, another prominent advisory firm, criticised Singhania’s proposed pay structure for its lack of transparency. The absence of a cap on his remuneration and performance-linked incentives, along with the lack of malus or clawback provisions for underperformance, led IiAS to describe the compensation package as "open-ended" and lacking essential safeguards, according to media reports.
