Institutional EYE

Commentary on Corporate Governance Issues

The brouhaha over the HDFC vote

The recent shareholder vote on HDFC and Uday Kotak’s comments on regulating ‘proxy firms’ have brought focus on this nascent industry. This Institutional EYE looks at the contours of the business, why the Indian firms should be called voting advisory firms – and not proxy firms and highlights the implication of governance standards transcending geography, industry and ownership structures. Last month, in related but contrasting developments, foreign institutional investors jostled to put money - lots of it, into two HDFC group companies - its asset management business and the bank, while at the same time they almost succeeded in voting out its chairman – the very person on whose shoulders th

IiAS’ recommendation to vote against Employees Stock Options Scheme, 2018 of ICRA Limited.

ICRA Limited yesterday filed its response with stock exchanges on voting recommendations made by proxy advisory services firms regarding the resolutions that ICRA Limited is presenting in its recent Annual General Meeting. In its voting recommendation report, IiAS had recommended that shareholders vote against the ESOP 2018 scheme. Under this scheme, the 39,993 options remaining out of the earlier expired scheme would be made available for grant. Under ESOS 2018 scheme, the exercise price will be determined by the Nomination and Remuneration Committee, subject to a minimum of the face value per share. The company has, in the past, granted stock options at a significant discount to market pr

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