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Remuneration Policy for Directors' and Key Managerial Personnel

The philosophy for remuneration of directors and Key Managerial Personnel (“KMP”) of Altico Capital India Pvt. Ltd. (“Company”) is based on the commitment of fostering a culture of leadership with trust. The remuneration policy is aligned to this philosophy. This remuneration policy has been prepared pursuant to the provisions of Section 178(3) of the Companies Act, 2013 (“Act”). In case of any inconsistency between the provisions of law and this Remuneration Policy, the provisions of the law shall prevail and the Company shall abide by the applicable law. In case there are any changes in the law, the Company shall comply with the applicable amended provisions.


While formulating this Policy, the Remuneration Committee (“RC”) has considered the factors laid down under Section 178(4) of the Act which are, as under:

  • the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors of the quality required to run the company successfully;

  • relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and

  • remuneration to directors, key managerial personnel and senior management involves a balance between fixed and incentive pay reflecting short and long‐term performance objectives appropriate to the working of the company and its goals”.

Remuneration for Independent Directors and Non-Independent Non-Executive Directors:
  • Independent Directors (“ID”) and Non-Independent Non-Executive Directors (“NED”) may be paid remuneration as prescribed under the applicable law.

  • Within the parameters prescribed by law, the payment of Remuneration will be recommended by the RC and approved by the Board.

  • Overall remuneration should be reasonable and sufficient to attract, retain and motivate directors aligned to the requirements of the Company (taking into consideration the challenges faced by the Company and its future growth imperatives).

  • Overall remuneration should be reflective of the size of the Company’s’ complexity of the sector/ industry/ Company’s operations and the Company’s capacity to pay the remuneration.

  • Overall remuneration practices should be consistent with recognized best practices.

  • Quantum of remuneration may be subject to review on a periodic basis, as required.

Remuneration for KMP/Rest of the Employess:
  • The extent of overall remuneration to the KMPs/ rest of the employees should be sufficient to attract and retain talented and qualified individuals suitable for their role. Hence, remuneration should be:

    • market competitive (market for every role is defined as companies from which the company attracts talent or companies to which the company losestalent)

    • driven by the role played by the individual;

    • reflective of size of the company, complexity of the sector/ industry/ company’s operations and the company’s capacity to pay;

    • consistent with recognized best practices; and

    • aligned to any regulatory requirements.

  • In terms of remuneration mix or composition:

    • The remuneration mix for the CEO/CFO/CCO if any will be as per the contract approved by the Shareholders. In case of any change which is beyond the remuneration approved by the Shareholders, the same would require the approval of the Shareholders.

    • Basic/ fixed salary is provided to all employees to ensure that there is a steady income in line with their skills and experience.

    • In addition to the basic/ fixed salary, the Company provides employees with certain perquisites, allowances and benefits to enable a certain level of lifestyle and to offer scope for savings and tax optimization, where possible. The Company also provides all employees with a social security net (subject to limits) by covering medical expenses and hospitalization through re-imbursements or insurance cover and accidental death, group term life policy and dismemberment through personal accident insurance.

    • The Company provides retirement benefits, as applicable.

    • The Company will provide the rest of the employees, a performance linked incentive pay. The performance linked pay would be driven by the outcome of the performance appraisal process and the performance of the Company.

Remuneration Payable to Director for Services rendered in other capacity:
  • The servicesrendered are of a professional nature;

  • The Remuneration Committee is of the opinion that the director possesses requisite qualification for the practice of the profession; and

  • Necessary regulatory approvals are obtained if any.

Policy Implementation:

The RC is responsible for recommending the Remuneration Policy to the Board. The Board is responsible for approving and overseeing implementation of the Remuneration Policy.