Raymond Lifestyle Appoints Gautam Singhania as Chairman

Raymond Lifestyle has announced the appointment of Gautam Hari Singhania as its Executive Chairman. According to a regulatory filing, the resolution for his appointment garnered 86.85% approval from shareholders, with 13.15% voting against it. This decision, outlined in a Postal Ballot Notice dated November 4, 2024, was passed with the requisite majority. The remote e-voting process ran from November 5, 2024, to December 4, 2024.

Singhania’s tenure as Executive Chairman will span from September 1, 2024, to August 31, 2029. However, the appointment has faced criticism from proxy advisory firms, including Institutional Investor Advisory Services India (IiAS) and Stakeholders Empowerment Services (SES). These firms urged shareholders to reject the proposal, citing concerns over governance, transparency, and reputational risks.

SES raised objections regarding Singhania holding full-time roles in both Raymond Limited and Raymond Lifestyle Limited. It also flagged the absence of a fixed cap on his variable pay and commission, as well as a lack of clarity in the company’s restructuring plans. Similarly, IiAS criticized the proposed remuneration structure for lacking a maximum cap and performance-linked metrics for commission payouts.

IiAS also highlighted reputational risks, pointing to ongoing legal issues involving Singhania. His estranged wife, Nawaz Modi Singhania, has accused him of domestic violence and alleged misuse of company funds for personal expenses.

Earlier this year, the Raymond Group announced a demerger, paving the way for three separate listed entities: Raymond Limited, Raymond Lifestyle Limited, and Raymond Realty Limited. The group stated that all formalities related to the Scheme of Arrangement are underway to finalize the transition.

This development marks a significant shift for Raymond Lifestyle amid scrutiny over leadership and governance practices.