Gautam Singhania faces calls to step down from Raymond's board: 'Until divorce with Nawaz Modi is settled' - Hindustan Times
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Gautam Singhania faces calls to step down from Raymond's board: 'Until divorce with Nawaz Modi is settled'

Jun 19, 2024 12:38 PM IST

The proxy advisory firm called for both Gautam Singhania and his estranged wife Nawaz Modi to be removed from their positions.

Institutional Investor Advisory Services (IiAS) urged Raymond shareholders to vote against the reappointment of Gautam Singhania as Chairman and Managing Director (CMD). The proxy advisory firm called for both Gautam Singhania and his estranged wife Nawaz Modi to be removed from their positions at the upcoming AGM on June 27. This should be done until the couple's divorce proceedings are resolved, IiAS said.

Institutional Investor Advisory Services (IiAS) urged Raymond shareholders to vote against reappointment of Gautam Singhania.
Institutional Investor Advisory Services (IiAS) urged Raymond shareholders to vote against reappointment of Gautam Singhania.

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Gautam Singhania has served on Raymond's board since April 1, 1990. He has faced allegations from Nawaz Modi of domestic violence and misuse of company funds. IiAS emphasized the seriousness of the accusations and the negative impact on investor confidence, reflected in the recent decline in Raymond’s stock price.

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IiAS said, "Until the divorce issues are settled and an independent investigation is completed, we expect both Gautam Singhania and Nawaz Modi to step off the board."

IiAS raised concerns about Gautam Singhania’s proposed remuneration saying it is much more than the size of the business and not in line with industry peers at all.

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The proposed structure, effective from July 2024 to June 2027, could see Gautam Singhania's remuneration exceed regulatory limits and amount to around 35 crore- over 5% of the profit for FY24.

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