Sona Comstar board approves performance share plan for MD and CEO

Sona BLW Precision Forgings Limited announced its board of directors approved the Performance Share Plan 2025 (PSP 2025) on November 17, 2025. This plan, recommended by the Nomination and Remuneration Committee, is for managing director and group CEO, Mr. Vivek Vikram Singh, and is subject to shareholder approval. The PSP 2025 aims to retain, incentivize, and reward Mr. Singh for enhanced performance, addressing that his current remuneration of 0.57% of PAT is significantly lower than the 2.91% average among comparable companies.

The PSP 2025 will offer a maximum of 1,500,000 equity shares, with a face value of INR 10 per share, over a five-year period (FY2025-26 to FY2029-30). The shares will be allotted in yearly tranches based on year-on-year growth in consolidated EBITDA, with specific thresholds determining the number of shares offered. For example, 100,000 shares are offered for 5% growth, with increasing allocations for higher growth up to 350,000 shares for 35% or more growth.

The overall remuneration for Mr. Singh, including perquisites from PSP 2025 shares, will remain within the 5% net profit limit as per the Companies Act, 2013. Since Mr. Singh’s appointment in 2019, the company’s revenue and profit after tax have grown by 31% and 35%, respectively.