High Stakes Battle: Saluja Receives Religare Finvest ESOPs Amidst Burman Family’s Open Offer Announcement

In a strategic move, Rashmi Saluja, the executive chairperson of Religare Enterprises Limited (REL), secured an approximately 8% stake in the conglomerate’s shadow bank, Religare Finvest Limited (RFL), through an Employee Stock Option Plan (ESOP) award. This development unfolded just a day after the Burman Family, the largest shareholder in the company, announced an open offer to acquire additional shares, intensifying the battle for control within the conglomerate.

According to reports, the ESOP award’s estimated value in the company falls within the range of Rs 150–260 crore. A previous evaluation by proxy advisory firm In Govern Research in November estimated the total value of stock options granted to Saluja by REL and its subsidiary, Care Health Insurance Limited, over the past 3–4 years to be over Rs 480 crore. With the additional award in RFL, Saluja’s cumulative compensation through ESOPs could range between Rs 630 crore and Rs 740 crore, making her one of the highest-paid executives in the history of Indian corporates, when combined with her annual salary.

The ongoing power struggle between the Burmans and the Religare board escalated, with both parties approaching regulators against each other. Saluja-led Religare board contends that the Burmans are unfit to take over the financial services company, while the Burmans accuse Saluja of insider trading and misuse of power to receive excessive remuneration. Both sides vehemently deny these allegations.

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The acquisition of the 8% stake in RFL through stock grants took place on September 26, a day after the Burman Family’s open offer announcement, which was later rejected by the board. The Burmans, in turn, alleged that the stock grants issued to Saluja violated takeover rules.

During the annual general meeting of RFL, the ESOPs were approved as part of the “special business.” Notably, the documents reviewed by ET indicate that the RFL resolution was passed by a show of hands, and the disclosure of the ESOP grants was not made to REL shareholders. This lack of transparency raises questions about corporate governance. Moreover, during REL’s AGM on September 27, a resolution reappointing Saluja as chairperson was approved without any mention of the proposed ESOP issuance, in contrast to claims made by Saluja’s office. The timeline of events and the discrepancies in disclosure further intensify the scrutiny surrounding the unfolding corporate drama.