News Corporate Actions Orient Electric Issues Postal Ballot Notice for Executive Long-Term Incentive PlansOrient Electric Issues Postal Ballot Notice for Executive Long-Term Incentive Plans
Orient Electric Limited has issued a postal ballot notice for shareholder approval of executive long-term incentive modifications under its new LTI Plan 2025. The company seeks approval for Managing Director Ravindra Singh Negi's ₹4.70 crores cash incentive and 3,16,600 stock options, replacing previously approved benefits. Additionally, President-Strategy Avani Birla is proposed to receive ₹3.83 crores long-term cash incentive. Remote e-voting is scheduled from January 24 to February 22, 2026, with KFin Technologies facilitating the process.
*this image is generated using AI for illustrative purposes only.
Orient Electric Limited has issued a postal ballot notice to shareholders seeking approval for significant modifications to executive compensation packages under its newly introduced Long-Term Incentive Plan 2025. The company has scheduled remote e-voting from January 24, 2026, to February 22, 2026, for shareholders to vote on proposed incentive grants for key leadership positions.
Executive Compensation Restructuring
The postal ballot addresses two primary resolutions concerning long-term incentive modifications for senior executives. The company's board has recommended substantial changes to existing compensation structures to align with the new three-year business plan covering fiscal years 2026-2028.
Managing Director Incentive Modifications
The first resolution proposes modifications to Managing Director and CEO Ravindra Singh Negi's compensation package, replacing previously approved incentives with enhanced long-term benefits:
| Component | Details |
|---|---|
| Stock Options: | 3,16,600 options under ESOP Scheme 2019 |
| Exercise Price: | ₹213.52 per share |
| Vesting Schedule: | 40% after first year, 60% after second year |
| Cash Incentive: | ₹4,70,40,000 total |
| Vesting Period: | 30% FY26, 30% FY27, 40% FY28 |
| Effective Date: | April 01, 2025 |
These new incentives replace the unvested portion of ₹2,62,50,000 cash incentive and 2,00,262 stock options granted earlier in June 2024. The modifications reflect the company's strategic shift toward performance-linked compensation tied to revenue and profitability targets.
President-Strategy Incentive Grant
The second resolution addresses a new long-term cash incentive for Avani Birla, President-Strategy, under the LTI Plan 2025:
| Parameter | Details |
|---|---|
| Total Incentive: | ₹3,83,00,000 |
| Vesting Structure: | 30% FY26, 30% FY27, 40% FY28 |
| Performance Basis: | Pre-determined revenue and profitability targets |
| Relationship: | Daughter of Chairman CK Birla |
| Current Holdings: | 1,30,000 equity shares |
This incentive comes in addition to her existing annual remuneration approved by shareholders at the July 29, 2021 Annual General Meeting, which authorized compensation up to ₹5.00 crores annually.
E-Voting Process and Timeline
The company has engaged KFin Technologies Limited to facilitate the remote e-voting process. Shareholders whose names appear in the Register of Members as of the cut-off date of January 16, 2026, are eligible to participate in the voting process.
| E-Voting Schedule | Timing |
|---|---|
| Commencement: | January 24, 2026 at 9:00 AM IST |
| Conclusion: | February 22, 2026 at 5:00 PM IST |
| Cut-off Date: | January 16, 2026 |
| Scrutinizer: | Atul Kumar Labh, Practicing Company Secretary |
The postal ballot notice has been sent electronically to shareholders whose email addresses are registered with the company or depositories, in compliance with Ministry of Corporate Affairs circulars.
Strategic Context and Leadership Background
The LTI Plan 2025 introduction reflects Orient Electric's strategic evolution from primarily a fan manufacturer to a comprehensive home solutions provider encompassing lighting and appliances. Ravindra Singh Negi brings over 27 years of experience across telecom and consumer durables sectors, including leadership roles at Bajaj Electricals Limited and Bharti Airtel.
Avani Birla has spearheaded the company's strategic transformation initiatives, including distribution expansion, manufacturing growth, product innovation, and market expansion in lighting and smart home segments. Her background includes experience with GE Capital and Apax Partners, along with degrees from University of Cambridge and Harvard Business School.
Regulatory Compliance and Shareholder Rights
The proposed resolutions require ordinary resolution approval from shareholders, with voting rights proportional to shareholding as of the cut-off date. The company has appointed Atul Kumar Labh as scrutinizer to ensure fair and transparent voting processes.
Results will be announced within two working days after the voting period concludes and will be displayed on the company website, KFin Technologies platform, and communicated to stock exchanges. The resolutions will be considered passed if the requisite majority of shareholders provide their assent through the e-voting process.
Source:
Historical Stock Returns for Orient Electric
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.62% | +8.30% | -2.40% | -19.04% | -21.68% | -30.50% |
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