Shareholders of Tata Motors have approved proposals to pay higher salaries to its two top executives and payment of remuneration and death-related benefits to its late Managing Director Karl Slym.
Last year the shareholders had rejected the proposals to pay higher salaries to three executives, including Tata Motors’ executive directors — Ravindra Pisharody (Commercial Vehicles) and Satish Borwankar (Quality) citing inadequacy of profits in company.
In a filing to the BSE, the company said its shareholders have approved its five proposals with requisite majority.
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The proposals that entailed doling out higher pay packets — beyond the permissible limit — were put for shareholders’ approval and were approved by the shareholders with requisite majority.
As per the postal ballot notice, Mr. Pisharody’s remuneration for 2014-15 was proposed with a basic salary, Rs.62.40 lakh, benefits, perquisites and allowances of Rs.75 lakh, commission/incentive of Rs.124.80 lakh and retirement benefits Rs.69.66 lakh. For Mr. Borwankar, the company had proposed basic salary of Rs.49.20 lakh, benefits, perquisites and allowances Rs.80.80 lakh, commission/incentive Rs.98.40 lakh and retirement benefits Rs.40.07 lakh for the year. As for late Slym, the company had sought approval from the shareholders to pay Rs.15.03 crore.
Commenting on the development a Tata Motors spokesperson said the company is happy to note the strong positive voting from the shareholders in favour of the resolutions.
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“We were committed to a completely transparent process and through deeper direct engagement with the shareholders that enriched our mutual understanding, we proactively addressed their concerns and queries before we put the resolutions to a re-vote,” she said.
The positive results are an endorsement of the company’s disclosure and governance policies and indicate the shareholders’ faith in the company’s management especially as it works towards a turnaround in a challenging market situation, she added.
Tata Motors shares closed at Rs.551.40 apiece, down 1.38 per cent, on the BSE.