New Delhi: In a major top-management rejig, Apollo Hospitals Enterprises (AHEL) on Wednesday elevated two of its founder's daughters - managing director Preetha Reddy and executive director Shobana Kamineni - to the number two position in the hospital chain by designating them as executive vice-chairpersons. The reorganisation is in line with Apollo's succession plan.
The company has also re-designated the other two Reddy sisters, Suneeta and Sangita, as managing director and joint managing director, respectively.
In a statement, the company which runs a chain of hospitals, clinics and pharmacies, across the country, said the decision was taken on Wednesday at a meeting of the board of directors of the company.
Preetha Reddy, who is currently the managing director, is now the executive vice chairperson with immediate effect for the remaining period of her tenure up to February 2, 2016. Also, the current joint managing director, Suneeta Reddy, will be the managing director with immediate effect for the remaining period of her tenure up to February 02, 2016.
The current executive director - special initiatives, Shobana Kamineni, is now the executive vice chairperson with immediate effect for the remaining period of her tenure upto January 31, 2015.
Sangita Reddy, who is currently executive director – operations, was given the role of the joint managing director with immediate effect for the remaining period of her tenure up to February 2, 2016.
The company also said the board has also approved the re-appointment of Shobana Kamineni as executive vice chairperson for a period of five years with effect from February 01, 2015 on the existing remuneration terms. However, the re-appointment is subject to approval of members at the ensuing annual general meeting.
The company said their remuneration would remain unchanged. While Reddy sisters earn an annual remuneration of Rs 5.25 crore each as per the annual report 2012-13, their father Prathap Reddy, chairman of the group, earns Rs 15.63 crore annually.
Dr Prathap Reddy, the founder of Apollo Hospitals, in which his family controls a little over a third (34.35%) of the shares, had often said that his eldest daughter Preetha would succeed him.
The board also approved the appointment of Vinayak Chatterjee, chairman and MD of Mumbai-based Feedback Infrastructure, as an additional director with effect from July 2, 2014, to hold office as an independent director of the company.