Tata Motors cuts salaries of top executives amid mounting losses in India
Tata Motors FY17 losses led the company to cut salaries of top executives while independent directors received double digit rise.
According to Tata Motors 72nd annual report, the company has declared that its top executives will be seeing pay cuts. Of these executives, Ravi Pisharody – Executive Director, Satish Borwankar – Executive Director – Quality, C Ramakrishnan – CFO and Hoshand Setha – Company Secretary got pay cuts to the extent of -17%, -12%, -2% and -6% respectively.
However, on the same note, the company announced that independent directors of the company have received a double digit increase in compensation. Guenter Butschek, CEO and Managing Director has received an annual salary of INR 22.25 crores in FY17. Below table sheds more light on new salary.
[table id=189 /]
Tata Motors Commercial Vehicle division has noted a significant decline in market share over the past few years. It fell from 59.4% in FY12 to 44.4% in FY17 while market share of Passenger Vehicles declined from 13.1% in FY12 to just 5.2% in FY17. This poor performance is due to postponement of new products, lack of responsiveness in a competitive market scenario and flawed cost structures that has had a direct impact on market share. Tata Motors now aims to augment market share with a reduced cost base, launch of new products on a timely basis and streamlining of supply chain.
Net revenues of the company has declined by 1.2% to INR 2,69,850 crores for the period ended 31st March 2017 while consolidated profit before tax also fell to INR 9,315 crores from 14,126 crores from the year ago period.