BANGALORE: The Indian automotive market have probably shown signs of taking a back seat between 2014 and 15, however some of the top leading automobile firms holding top brass have received bountiful for engineering turnarounds as well as for their extra responsibility, reports ET.
According to the ETIG study of annual reports and wage packages of 7 top executives, state that while such executives received have double-digit pay perks others earned a compensation that was doubled or tripled.
In FY15, topping the list of hikes was Vinod Dasari managing director of Ashok Leyland with a 213.21pct increase to Rs 6.64 crore. Dasari updated the country's second largest medium with a weighty truck maker to create a turnaround. He had taken some difficult decisions of selling non-core assets as well as cutting salaries of employees for which he too underwent a pay cut of 24pct in FY14. Nonetheless rationalisation of costs was handsomely bestowed with the report from the company stating Rs 442 crore profits prior to tax in FY15 in comparison to the previous year’s loss of Rs 91.22 crore
TVS Motor a south India-based company also felt the heat of the competition but managed to make a smart turnaround. The company eventually rewarded Sudarshan Venu, joint managing director, with a 102.57pct hike in reward to Rs 5.51 crore.
MD of ABC Consultants, Shiv Agrawal, cited an increase in rumination during hard times only shows the company is trying to hold on to good talents as an asset to the future. Agrawal said "The professionals have had it good in the last few years purely due to opportunities around. There are always questions raised by shareholders on steep increase in compensation towards the heads steering the company, but companies always take a long-term view and are future proofing them." Experts disclosed that although the market doesn’t have the brightest of days, company boards normally hand out larger pay roles company senior executives and company heads to retain them as future investments while maintaining stability
Although the growth percentage is high, the compensation amount is within prescribed limits as per the Companies Act which stated an order of amount that doesn’t surpass 5pct of net profit of the company for any kind of managing director during that particular period.
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