Neuland Labs Clarifies Executive Compensation for Davuluri Saharsh Rao

Neuland Laboratories Limited released an addendum to its 41st Annual General Meeting (AGM) notice, scheduled for July 30, 2025. This addendum specifically clarifies the commission (variable pay) payable to Mr. Davuluri Saharsh Rao during his proposed reappointment term.

The maximum commission for Mr. Rao will not exceed 2% of the company's net profits or INR 10 crores, whichever is lower, for each financial year. This commission will be determined by the Board of Directors based on the Nomination and Remuneration Committee's recommendation and linked to a Balance Scorecard.

The Balance Scorecard allocates 60% of the weightage to financial parameters, including growth in revenues, CMS business, and contribution. Non-financial parameters, accounting for 40% of the weightage, include capability building, customer satisfaction, brand building, new product development, compliance, employee engagement, and sustainability goals. A minimum achievement of 70% against set goals is required for any commission to be paid. The NRC may also recommend discretionary adjustments to weightages.