The share price of Eicher Motors fell over two percent on Friday after the company's shareholders voted against the re-appointment of Siddhartha Lal as the managing director.

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Shareholders were against the quantum of salary hike for Lal, considering that the company's revenues and profit growth had been hit by the pandemic and also because the median employee salary hike was one percent.

Eicher Motors sources told CNBC-TV18 that the company is working to resolve this issue as early as next week. The company will call for a meeting of the board of directors next week, sources said.

Read here:

Siddhartha Lal voted down as Eicher's MD over pay hike proposal; co working to resolve issue

The board is likely to review the terms of the earlier proposal for the appointment of Siddharth Lal, and following that, the proposal for reappointment of Siddharth Lal as MD will be put up for postal ballot.

Meanwhile, last week, Eicher had replaced Vinod K Dasari with B Govindarajan as the chief executive officer of Royal Enfield, a division of Eicher Motors.

Read here: Royal Enfield CEO Vinod K Dasari resigns, B Govindarajan named as executive director

Govindarajan has been the chief operating officer at Royal Enfield since 2013. Meanwhile, Dasari, who recently started a not-for-profit hospital in Chennai, will work towards building affordable and accessible health care facilities

At 11:15 am, the share price of Eicher Motors were trading 1.11 percent lower at Rs 2,561.65 apiece on the BSE.

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