MSME-focused non-banking financial company UGRO dismissed concerns raised by a proxy advisory firm regarding the re-appointment and salary of its vice-chairman and managing director, Shachindra Nath, ahead of its annual general meeting scheduled for May 29, according to livemint.com. The proxy advisory firm had recommended institutional investors vote against the resolution for Nath’s re-appointment.
UGRO responded in a regulatory filing to stock exchanges, stating that the proposed compensation for Nath is at or below the market median. This was independently verified by Aon, a global compensation advisory firm, which was engaged by UGRO’s fully independent Nomination and Remuneration Committee in April. UGRO also criticized the proxy advisory firms for routinely raising concerns without adequate basis.
The issue is significant as proxy advisory firms influence institutional investor voting, which can impact governance decisions and leadership continuity in listed companies. UGRO’s clarification aims to reassure shareholders about the appropriateness of executive pay, especially in the competitive NBFC sector where attracting and retaining experienced leadership is critical. The company’s approach aligns with market standards verified by a reputed global consultancy.
Investors and market watchers will focus on the outcome of the vote at UGRO’s annual general meeting today. The decision will determine whether Shachindra Nath continues as managing director and vice-chairman under the proposed compensation structure. UGRO’s next steps will likely involve ongoing engagement with shareholders to address governance concerns and maintain confidence in its leadership team, as reflected in its regulatory disclosures.