Reddy has called for a regulatory curb on remuneration MFI Chief Executive and meeting fees for the Board of Directors.
He alleged that the new CEO has been offered an annual salary of Rs 6 crore, which is equivalent to the remuneration of CEOs of large private banks.
In a mail to lenders explaining the circumstances behind his sudden resignation, he termed the board incompetent and blamed the members for acting only on behalf of Kedara Capital, which holds 45% stake in the company.
Reddy holds around 17% stake in Spandana and is still a member of the board.
In the context of reserve Bank of IndiaAfter the deputy governor of Rajeswara Rao recently suggested MFIs to focus on social objectives only over profiteering, Reddy wanted the RBI to make rules on CEO salaries.
“I agree with his views and I would request RBI to put some curbs on sitting fees for MFI CEO CTC and Board of Directors. Don’t they need a social cause?” he said in the mail.
Following his resignation, the Spandana Board confirmed the hiring of a reputed industry veteran as its new MD and CEO and the formation of a Management Committee, which will strategically guide business operations in the interim as part of the transition plan. provides. While the company did not name the next CEO, it is learned that the current MD of Bharat Financial Inclusion, Shalabh Saxena, has been offered the position.
“While I always feel obliged to all the lenders, I am in a helpless position and I can only hope that Spandana will find a committed and capable team to run the company. A shareholder, promoter and founder of Spandana As in, I do not want this company to be managed by someone who has been found guilty of managing overdues and creating fake loans. I want Spandana to reach greater heights.”