Indicating a change in its top leadership position in the near future, ITC has said its chief Y C Deveshwar would move into a non-executive role sometime in the next five years to pave way for his successor.
The business conglomerate, with interests spanning across tobacco to FMCG segments, has sought shareholders' approval for the reappointment of Yogesh Chander Deveshwar, 64, as its wholetime director and chairman with effect from February 5, 2012.
At the same time, it has also sought the approval for Deveshar getting in the role of non-executive chairman for a part of this five-year tenure, as part of a succession planning process.
In about 100 years of existence of ITC, it has been headed by Yogi Deveshwar for about 15 years so far.
The approval has been sought in a notice sent to ITC shareholders, who would vote on the proposals at the company's 100th Annual General Meeting to be held on July 29, 2011.
However, the company has not mentioned any specific separate tenures for the executive and non-executive roles to be essayed by Deveshwar.
"As a process of succession planning, a part of this tenure may be served by Deveshwar as non-executive chairman, as board of directors of the company may determine," ITC said.
The remuneration for such period of non-executive chairmanship will be determined afresh by the board, it added.
An engineering graduate from the IIT, Delhi, Deveshwar joined ITC in 1968 and took over as the Chairman in 1996.
During his tenure, ITC diversified from tobacco business into new areas such FMCG, agri-business and information technology.
In 2011, he was conferred the Padma Bhushan.
Though the hunt for Deveshwar's successor has not officially began yet, Nakul Anand, P V Dhobale and K N Grant have been recently joined ITC's board as executive directors.
Nakul Anand (54) was appointed a director on January 3, 2011.
He holds responsibility of the hospitality, travel and tourism businesses of ITC.
P V Dhobale (55) was also appointed as a director on the Board of ITC on January 3, 2011.
He is responsible for finance and IT functions, paperboards and specialty papers and packaging businesses.
Kurush N Grant (53) was appointed a director on March 20, 2010.
He oversees ITC's FMCG businesses -- cigarettes, foods, personal care, lifestyle retailing, education and stationery products, matches and agarbattis (incense sticks).
The board of directors of the company has proposed consolidated salary of Rs 26 lakh (Rs 2.6 million) per month for Y C Deveshwar after his re-appointment.
He will also be eligible for a performance bonus of up to 200 per cent of consolidated salary, payable annually, as also perks worth Rs 20 lakh (Rs 2 million) per month.
Image: Y C Deveshwar
