Hathway seeks shareholders’ nod to re-appoint Rajan Gupta as MD for 3 years

MUMBAI: Cable TV and broadband service provider Hathway Cable and Datacom has sought the approval of shareholders to re-appoint Rajan Gupta as managing director (MD) for a period of three years.

The company has accorded consent to re-appoint Gupta as MD from 25 November 2018 till 24 November 2021. As MD, Gupta will be paid a remuneration of Rs 9.83 crore over the three year period.

The fixed and variable incentive for the period 25 November till 31 March 2019 will be Rs 1.05 crore. For FY20 and FY21, the remuneration will be Rs 3.1 crore and Rs 3.3 crore. The pay for 1 April 2021 to 24 November 2021 will be Rs 2.32 crore.

The variable portion of the remuneration will be paid subject to achievement of various company and personal performance targets as shall be stipulated by the board.

Apart from the remuneration, the MD is also eligible for a three-year membership to be sponsored by the company for him and his immediate family of a club which the parties may mutually decide.

He will also be eligible for Advance Management program (sponsored by the company up to Rs. 55,00,000/- of the total cost) at a university/college that the parties may mutually decide.

The MD will be eligible for this benefit only on the second anniversary of the effective date provided he is still in the employment of the company as on such second

In addition to the above, the MD’s entitlement to employee stock options of the Company (ESOPs) subject to adoption of the ESOP policy and requisite approvals.

The MD will be issued 53,60,000 ESOPs at a price of Rs. 19 per option, upon exercise of which the MD will be entitled to 53,60,000 equity shares in the Company. The ESOPs granted to the MD shall vest upon completion of the Term (Vesting Date). The MD will be entitled to exercise the ESOPs within a period of 135 days of the Vesting Date.

In addition to the ESOPs, the company will pay the MD an amount in cash, provided he is in the employment of the company on the vesting date (has completed the Term).

If the closing market price per equity share of the Company on the BSE Limited is less than Rs. 19 per share, the MD will be paid an amount in cash 53,60,000 equity shares multiplied by the closing market price. If the share price is in excess of Rs. 19 per share, MD will be paid Rs. 10.18 crore.

The company has also sought approval for ‘Hathway Employee Stock Option Plan 2018’.

Hathway has dispatched the Postal Ballot Notice along with Postal Ballot Form to the members whose names appear in the Register of Members/ Beneficial Owners as on 24 August.

Hathway members have to send the duly completed Postal Ballot Forms on or before 5 pm on 2 October. The Scrutinizer will submit his Report and the result on the resolutions proposed to be passed through the Postal Ballot will be announced on 4 October.

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