Chapter VII - RIGHTS AND OBLIGATIONS OF DEPOSITORIES, PARTICIPANTS, ISSUERS, MANNER OF SURRENDER OF CERTIFICATE OF SECURITY AND CREATION OF PLEDGE OR HYPOTHECATION (From Regulation 40 to Regulation 82AA)
Variable pay governance: deferred remuneration, prohibition on equity-linked awards, and mandatory malus and clawback arrangements. Compensation norms require a defined variable pay component with a significant portion deferred for a minimum multi-year period; ESOPs and other equity-linked instruments are prohibited for key management personnel; malus and clawback arrangements must be included. The policy must consider the depository's financial health, industry-comparable compensation, role and responsibilities, revenues and profits, periodic review, and must not incentivise excessive short-term risk. Board approval for the managing director's compensation is required at appointment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Variable pay governance: deferred remuneration, prohibition on equity-linked awards, and mandatory malus and clawback arrangements.
Compensation norms require a defined variable pay component with a significant portion deferred for a minimum multi-year period; ESOPs and other equity-linked instruments are prohibited for key management personnel; malus and clawback arrangements must be included. The policy must consider the depository's financial health, industry-comparable compensation, role and responsibilities, revenues and profits, periodic review, and must not incentivise excessive short-term risk. Board approval for the managing director's compensation is required at appointment.
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