Religare has refuted the allegations against Rashmi Saluja
Proxy advisory firm InGovern Research Services has raised concerns about Religare Enterprises Ltd (REL) Chairperson, Rashmi Saluja, of receiving excessive remuneration.
The report highlights regulatory issues, stating that shares of Care Health Insurance were issued to Rashmi Saluja through Employee Stock Ownerhip Plans (ESOP) without approval from the Insurance Regulatory and Development Authority of India (IRDAI) and without the consent of REL shareholders.
Since becoming Executive Chairperson in February 2020, Rashmi Saluja received 1.5 crore options of Religare Enterprises (REL), valued at over Rs 230 crores. As Non-Executive Chairperon of CARE, she got stock options worth over Rs 250 crores, deemed excessive by InGovern Research.
In January 2022, 2.27 crores ESOPs were granted to Ms Saluja in CARE, breaking IRDAI rules. These should only go to CEOs and Managing Director. The IRDAI rejected this, citing a breach of Rs10 lakh per annum limit for profit-related commission to Non-Executive Director, according to InGovern Research.
However, Religare refuted the allegations, calling them "completely false and erroneous".
Religare said the performance-linked remuneration was paid to Rashmi Saluja after approval of the Nomination and Remuneration Committee (NRC), Board, and the shareholders of REL.
"The allegation that the executive chairperson draws a remuneration of more than Rs 150 crore per annum is completely false and erroneous. As per the annual report for FY 22-23 of REL, the remuneration for the Executive Chairperson was Rs 8.12 crore. Even after including the perquisites value of the ESOPs, it reached a figure of Rs 42.06 crore," Religare said in a statement.
It further said that Ms Saluja was reappointed as the Executive Chairperson in February 2023 for a second term for a five-year period through a resolution by the Board and approval of shareholders.
Religare further said that Rashmi Saluja was instrumental in creating value for all the shareholders of REL. The share price of REL, which saw a low of Rs 17 in 2020, rose to a high of Rs 280 in September 2023.
"The ESOP perquisite value is also reflective of this significant value creation a part of which was also shared by her as a shareholder/employee of the company," Religare added.