Clarification to IiAS Voting Recommendation - Texmaco Rail & Engineering Ltd. - Postal Ballot
TEXRAIL · price
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Texmaco Rail has issued a clarification responding to proxy advisor Institutional Investor Advisory Services (IiAS) regarding their voting recommendation on the proposed Long Term Incentive Plan (LTIP) Scheme, 2026. The company emphasises that the LTIP is performance-based, with vesting tied to EBITDA margin (30%), EPS (25%), ROCE (30%), and Operating Cash Flow (15%). No shares vest if 85% of targets are not met over the 3-year scheme period. The company has not disclosed actual target thresholds, citing competitive sensitivity, but commits to disclosing achievement levels and vesting outcomes in the Annual Report after vesting. The firm is requesting IiAS to reconsider its recommendation and positively revise it.
The postal ballot is currently open for shareholder voting. If shareholders approve the LTIP, it will align executive compensation with performance metrics, potentially retaining and incentivising key personnel. However, the lack of disclosed targets may concern some institutional investors who voted based on IiAS recommendation.