Groww faces proxy advisory pushback over Esop, board nomination proposals

Proxy advisory firm Institutional Investor Advisory Services (IiAS) has recommended against all five resolutions proposed by Billionbrains Garage Ventures Limited, the parent company of Groww, citing governance and transparency concerns.

- KHUSHBOO TIWARI

The stock broker is seeking shareholder approval for amendments to the employee stock option (Esop) scheme and rights of founders to appoint directors onthe board. In its voting advisory, IiAS opposed the company’s proposal to amend and ratify its Esop Scheme 2024, under which up to 331.5 million stock options may be granted. The proxy advisory firm flagged the absence of clarity onthe exercise price, which will be determined by the nomination and remuneration committee. It highlighted that the options could have an unusually long exercise period.