Nestle India’s institutional investors rejected a proposal to increase royalty payments to its parent company in Switzerland from 4.5% to 5.25% of net sales over five years. About 70.8% of institutional investors opposed the move, constituting 80% of the total votes. The proposed hike was criticized by proxy advisory firm IiAS for potentially surpassing revenue growth and exceeding royalty rates of other multinational corporations in India. The rejection highlights concerns over financial implications and shareholder interests.