IT Services firm Coforge on Wednesday announced that it is seeking its shareholders’ approval to raise the remuneration limit of the company’s Chief Executive Officer and Executive Director Sudhir Singh from 5% to up to 10% of net profit.

Sudhir Singh was appointed Executive Director and CEO for five years from January 29, 2020. His remuneration and tenure were approved for five years until January 28, 2025. The company is now seeking approval to increase the remuneration limit per section 197 of the Companies Act, 2013. 

In an exchange filing on the Bombay Stock Exchange (BSE), the company said, “the limit could be breached during the remainder of his tenure on account of an exercise of stock options that were granted.” ESOPS granted to Sudhir will vest by FY25, and no further grants will vest in his balance term as ED. 

The company added that out of the total grants issued, only 14% are time-based, while most ESOP grants are performance/milestone based. Also, as per the filing, the cash bonus component is expected to be much lower in FY24 and FY25 compared to FY23. Coforge stated that there would be no increase in his fixed salary over his balanced term. 

Further, Coforge asked for approval of commission payment to the Independent Director and Chairperson of the Board of the company, Basab Pradhan, for a period of 3 years w.e.f, June 29, 2021, up to June 28, 2024, amounting to $220,000. 

The company’s shares ended 1.12% higher at Rs 4,611.90 on the BSE. On Wednesday, the stock hit a new 52-week high of Rs 4,678 in intraday trade.