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| Ranbaxy cuts pay package for new chief |
| Press Trust Of India / New Delhi Aug 17, 2009, 00:20 IST |
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The country’s top drugmaker, Ranbaxy, has proposed an annual pay package of Rs 6 crore for its new CEO and MD Atul Sobti, but his remuneration would be less than one-third of his predecessor, Malvinder Mohan Singh.Incidentally, Singh’s remuneration was in excess of the prescribed regulatory limits and Ranbaxy is waiting for the shareholders’ nod to seek the waiver of relevant norms from the central government.
Singh was paid in excess of Rs 9 crore and a host of other benefits for the period of a little over five months during which he held the positions of chairman, CEO and managing director at Ranbaxy — giving an average payout of about Rs 2 crore a month.
 After holding the office of CEO and MD for about three years, Singh was elevated to the position of Chairman, CEO and MD of Ranbaxy for a period of five years on December 19, 2008.
However, he resigned from these positions on May 24, 2009, and Atul Sobti was appointed as CEO & MD for a period of three years with effect from the same date.
Ranbaxy was promoted by Singh and his family before they sold their holding to Japanese drugmaker Daiichi Sankyo last year. At the time of announcement of the deal in June 2008, it was decided that Malvinder Singh would continue as CEO and MD and would also assume the position of Chairman after the closure of the deal.
During this period, he was paid a salary of over Rs 7.35 crore, as also allowances and perquisites totalling more than Rs 1.78 crore.
In addition, he also received benefits like three company-maintained cars with drivers, facilities like telephone, fax, computers, laptops, video-conference facility, internet and broad band at residence, mobile phones and hand-held email devices, company’s contribution to provident fund and superannuation fund, payment of gratuity and other retiral benefits and leave encashment.
Ranbaxy has also sought shareholders’ nod for “seeking approval of the central government for waiver of excess remuneration paid to Malvinder Mohan Singh for the period from December 19, 2008 to December 31, 2008.”
In view of the losses incurred in the year ended December 31, 2008, the company had sought and received the central government’s approval for the payment of remuneration to Singh as CEO and MD in excess of the specified limits for the period from January 1, 2008 to December 18, 2008. “For the period from December 19, 2008 to December 31, 2008 (the period in the accounting year 2008 during which Singh served as Chairman, CEO & MD), approval of the central government would be sought after the approval of the resolution by the shareholders,” Ranbaxy has said in a notice to its investors.
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