Good news for ITC, YC Deveshwar stay extended for another 2 years

Diversified conglomerate ITC has extended the term of its most illustrious head, Yogesh Chander Deveshwar for another two years till 2022. This is being done in light of “increasing size and complexity” of the conglomerate, ITC said. With his salary now exceeding 50% of the aggregate salary of other non executive directors, ITC is seeking approval of shareholders again under the revised regulations.

The development comes at a time when the conglomerate is diversifying further into dairy products, packaged fresh vegetables.

This strategy to reduce dependency on its mainstay cigarettes was spearheaded by Deveshwar during his tenure as chairman cum managing director.

At its upcoming annual general meeting, ITC is seeking approval of the shareholders for re-appointment of Deveshwar as non-executive director and chairman.

“Given the increasing size and complexity of the organisation, the Committee and the Board are of the view that it would be in the best interest of the company for Mr Deveshwar to continue in his capacity as chairman for some more time. Accordingly, the board at the meeting held on May 16 on the recommendation of the committee, recommended for the approval of the members, the re-appointment of Mr Deveshwar as chairman and non-executive director of the company for the period from February 5, 2020 to February 3, 2022, as set out in the resolution relating to his re-appointment,” ITC said in its notice to shareholders.

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Deveshwar, who has now taken up the mentoring role for the new MD Sanjiv Puri, was in the news last year when the board approved Rs 1 crore salary to him plus other benefits.

While his remuneration was earlier approved by shareholders, approval is again needed as it exceeds half of what is paid to other non-executive heads.

Deveshwar would now continue to get paid till 2022 consolidated salary of Rs 1 crore a month, commission ranging between Rs 30 lakh and Rs 60 lakh apart from rent-free furnished accommodation.

By Sumit Moitra, DNA India