Editor’s Note
This article details the expanded role of Vijay Jain at Sapphire Foods, who will now serve as both Executive Director and CFO. The company notes his remuneration remains consistent with his previous CFO package, adjusted only for standard annual increments.
Vijay Jain, who has been serving as the company’s Chief Financial Officer since September 5, 2018, is set to take on the expanded role of Executive Director and Chief Financial Officer (ED & CFO). Sapphire Foods emphasized that Jain’s proposed remuneration package remains largely unchanged from his previous position as CFO, with only standard annual increments applied.
The company addressed concerns about stock option grants, stating that no additional stock options have been or will be granted specifically due to Jain’s elevation to the ED & CFO position. Sapphire Foods disclosed that approximately 11 lakh stock options, representing 5% of the total Employee Stock Ownership Plan (ESOP) pool (equivalent to 0.3% of the issued share capital), remain unallocated.
Key points regarding the stock option allocation include:
– No exclusive allocation of stock options will be made to any board member, including the ED & CFO.
– Future stock option grants from the residual pool will be considered holistically for the overall management team and other key employees.
– Any potential future grant of stock options to the ED & CFO will not exceed 20% of the remaining unallocated pool.
– The minimum grant price for any future allocation of ESOPs will be Rs. 272.00 per share.
The company clarified that the performance-linked incentive (PLI) for Jain is part of his overall Cost to Company (CTC) package. The PLI is tied to the company’s operating profits and will be evaluated by the Nomination and Remuneration Committee at the end of each financial year, taking into account both individual and company performance.
Sapphire Foods emphasized that any additional grant of stock options beyond the residual ESOP pool would require fresh shareholder approval. The company also noted that their existing ESOP plans include provisions for malus and clawback, which can be triggered under certain specified circumstances.
This clarification by Sapphire Foods India Limited demonstrates the company’s commitment to transparency and proper corporate governance practices, providing shareholders with detailed information about executive compensation and stock option policies.
