Mumbai: Tata Motors Ltd cut the salaries of its top executives in the last financial year amid mounting losses in the company’s India business. Independent directors on the company’s board were rewarded with a double-digit increase in their compensation, according to the company’s 72nd annual report.
The sharpest drop in remuneration was that of Ravindra Pisharody, executive director, commercial vehicles. During the year, Pisharody received around Rs2.31 crore, a 17% decrease from the previous year. Satish Borwankar, executive director, quality, received a 12% cut in compensation to around Rs2.15 crore. C. Ramakrishnan, chief financial officer, and Hoshang Sethna, company secretary, had their remuneration reduced by 2% and 6%, respectively.
A Tata Motors spokesperson said, “Like (at) any other organisation, the compensation is based on the performance of the company and the employees."
Tata Motors’s standalone net revenues increased by 3.7% to Rs44,777 crore in the year that ended on 31 March 2017. Standalone loss before tax for the year widened to Rs2,421 crore from Rs67 crore a year ago.
Tata Motors has seen its market share slip over the last five years. Tata Motors’s market share in the commercial vehicles (CV) segment fell to 44.4% in fiscal 2017 from a high of 59.4% in FY2011-12, while its market share in passenger vehicles (PV) declined to 5.2% from 13.1% in the same period.
In a letter to the shareholders, N. Chandrasekaran of Tata group and Tata Motors, wrote, “In the domestic business segment, business turnaround is the need of the hour and management is working with renewed focus and energy to improve our market share, reduce our cost base, streamline the supply chain and ensure launch of products on time to delight our customers."
However, despite the poor performance, independent directors on the board of Tata Motors saw a sharp double-digit jump over the last year. Four out of six independent directors saw their remuneration advance in double digits. While Falguni Nayer’s compensation increased 41% to Rs14.40 lakh, V.K. Jairath’s increased 45% to 15.80 lakh, R. Mashelkar’s compensation also jumped 47% to Rs15.60 lakh. Of the remaining two, while Subodh Bhargava retired, N. Wadia was removed from the board with effect from 22 December 2016.