Big Stake Marans Steamroll Institutional Shareholders For Reappointment With Big Fat Salaries

In the corporate world, the phrase ‘All is fair in love and war’ has assumed a new meaning. Well, all is fair if rules are observed is now the touted line and reasoning given to explain away an ethically and morally unjustifiable action. Institutional shareholders voted against a resolution but found themselves unable to vote out the resolution in the face of a steamrolling majority held by the promoters.  A classic case was when the resolution relating to the reappointment of the Maran couple — Kalanithi and Kavery — sailed through at the annual general body meeting of the Sun TV Network despite a majority of institutional shareholders voting against it. The Maran couple are the highest paid executives in India. They have taken home close to Rs 1,500 crore by way of managerial remunerations over the last decade.  The promoter remuneration is now the subject of intense debate.  Is it ethical for promoters to vote on a resolution pertaining to their own compensation?  The whole issue has made a mockery of the so-called SEBI-ordained tight governance system. Like the RBI does, can’t corporations be told to make public disclosure of detailed minutes of meetings that clear the compensation paid to promoters? At least that will give the minority shareholders a clue about the logic for the high pay packets.