Sona Comstar’s Board has approved a new Performance Share Plan 2025 (PSP 2025) for Managing Director and Group CEO, Mr. Vivek Vikram Singh, subject to shareholder approval. The plan aims to align his compensation with market benchmarks and incentivize enhanced performance, retention, and company success. It involves allotment of equity shares based on achieving revenue and profit targets.
Performance Share Plan Approved
The Board of Directors has given the green light to the Sona BLW Precision Forgings Limited-Performance Share Plan 2025 (“PSP 2025”) for the benefit of Mr. Vivek Vikram Singh, Managing Director and Group CEO of the Company. This decision follows a recommendation from the Nomination and Remuneration Committee (“NRC”) and is pending shareholder approval.
Remuneration Review and Benchmarking
Prior to this approval, the Board and NRC reviewed Mr. Vivek Vikram Singh’s remuneration from the financial year 2019 through 2025. An independent firm benchmarked his compensation against MDs and CEOs of comparable Indian listed companies, revealing that his remuneration was among the lowest, representing 0.57% of the PAT, while the average in comparable companies stood at 2.91%.
Company Performance
The Board and NRC highlighted that since Mr. Vivek Vikram Singh’s appointment in 2019, the Company’s revenue and profit after tax have grown by 31% and 35%, respectively.
Key Objectives of the Plan
The PSP 2025 aims to retain Mr. Singh, incentivize enhanced performance, and reward his performance based on the Company’s success. The overall remuneration, including the perquisite from share allotment, will remain within 5% of the Company’s net profits.
Plan Details and Structure
The PSP 2025, effective for 5 years starting from the financial year 2025-26 till 2029-30, will offer equity shares based on year-on-year (“YoY”) growth in consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) achieved in the previous financial year. Allotted equity shares will be locked in for 1 year from the date of allotment.
Equity Share Allocation
The total number of equity shares offered under the PSP 2025 will not exceed 1,500,000, each with a face value of INR 10. The allocation will depend on the EBITDA growth: less than 5% growth results in zero shares, while 35% or more growth triggers an allocation of 350,000 shares.
Source: BSE