Neuland Laboratories Limited , a prominent pharmaceutical company, has released an addendum to its 41st Annual General Meeting (AGM) notice, shedding light on the proposed commission structure for Mr. Davuluri Saharsh Rao's reappointment. The AGM, scheduled for July 30, 2025, will be held virtually through video conferencing.

Commission Structure Details

The addendum outlines a performance-based commission structure for Mr. Rao, which is designed to align with shareholders' interests and promote company growth. Key aspects of the commission structure include:

• Maximum Limit: The commission will not exceed 2% of the company's net profits (computed under Section 198 of the Companies Act, 2013) or INR 10.00 crores, whichever is lower, for each financial year during his tenure.

• Performance Metrics: The commission will be determined based on a balanced scorecard approach with the following weightage:

  • 60% for financial parameters
  • 40% for non-financial parameters

Balanced Scorecard Approach

The balanced scorecard includes various metrics to ensure a comprehensive evaluation of performance:

1. Financial Parameters (60% weightage)

• Revenue growth
• CMS (Contract Manufacturing Services) business growth
• Other financial goals as decided by the Board

2. Non-Financial Parameters (40% weightage)

• Capability building
• Customer satisfaction scores
• Brand building
• New product development
• Compliance
• Employee engagement scores
• Sustainability goals

Performance Threshold and Discretionary Adjustments

To ensure accountability and maintain high standards, the commission structure includes:

• Minimum Eligibility: A minimum achievement of 70% against set goals is required for commission eligibility. No payment will be made if performance falls below this threshold.

• Discretionary Adjustment: The Nomination and Remuneration Committee (NRC) may recommend adjustments to the weightages based on external factors or extraordinary circumstances.

Governance and Approval Process

The commission will be determined by the Board of Directors based on recommendations from the Nomination and Remuneration Committee. This process ensures proper oversight and alignment with the company's remuneration policies.

Transparency and Disclosure

Neuland Laboratories has demonstrated its commitment to transparency by publishing this addendum in major newspapers and making it available on the company's website and stock exchange platforms. This move allows shareholders to make informed decisions regarding the proposed reappointment and compensation structure.

The 41st AGM of Neuland Laboratories Limited is set to take place on July 30, 2025, at 10:00 AM (IST) through video conferencing. Shareholders will have the opportunity to vote on various resolutions, including the reappointment of Mr. Davuluri Saharsh Rao with the newly clarified commission structure.

Neuland Laboratories , a prominent player in the pharmaceutical industry, saw its stock price soar by 12.00% to reach Rs 13,750.00 following a significant dividend announcement. The company's board has declared a final dividend of Rs 12.00 per share, representing 120.00% of the face value, for the fiscal year 2025.

Dividend Details

The company has set July 18, 2025, as the record date for determining shareholders eligible for the dividend payout. This announcement has evidently sparked investor interest, contributing to the substantial rise in the stock price.

Stock Performance

The surge in Neuland Laboratories' stock price is not just a reaction to the dividend news but also indicative of a strong bullish trend. Market analysts note that the stock is currently trading above all eight Simple Moving Averages, a technical indicator that suggests robust upward momentum.

Investor Outlook

The combination of a generous dividend payout and positive technical indicators paints an optimistic picture for Neuland Laboratories' shareholders. The 120.00% dividend relative to face value demonstrates the company's commitment to rewarding its investors, which could potentially attract more interest in the stock.

As the record date approaches, investors will be closely watching Neuland Laboratories' performance, with the stock's position above key moving averages potentially signaling continued strength in the near term.