Pawan Kant Munjal, Chairman of Hero Motocorp, retained his lead in pay packages last year, taking home a total sum of close to Rs 60 crore that is just shy of the next three combined.
Making a cool Rs 5 crore a month Munjal can buy as many as three dozen Hero Splendors (India’s second highest-selling two-wheeler) every day with his package.
Munjal is not the only executive from the two-wheeler space with a hefty package. In fact eight of the top ten earners from the automotive industry are from two-wheeler companies.
Though Munjal took a hike of four percent last year taking his pay to Rs 59.66 crore his package is more than double than that of rival Rajiv Bajaj of Bajaj Auto.
Bajaj’s pay package saw a growth of 15 percent to Rs 25.59 crore last year ahead of Bajaj Auto Chairman Rahul Bajaj and Venu Srinivasan of TVS Motors. Data of pay packages, which are sourced from annual reports, are primarily made up of basic salary, perquisites, allowances, retirement benefits, commission and stock options.
Until last year the top three positions were dominated by executives from two-wheeler companies whose combined packages totaled a staggering Rs 134 crore. Although Sunil Kant Munjal, Joint Managing Director, Hero Motocorp last year stepped down he slipped to the fourth position but still significantly ahead of Srinivasan.
The biggest entry into the list was by Guenter Butschek, Managing Director and CEO, Tata Motors. The former Airbus and Daimler executive who took over in February 2016 was paid Rs 22.55 crore last financial year. Butschek who is the highest ever paid Tata Motors employee, is now the third highest paid executive from the automotive industry.
Ironically, shareholders, led by proxy advisory firms, raised objections on pay packages fixed for former executive director Ravi Pisharody and current executive director and chief operating officer Satish Borwankar only three years ago.
The median remuneration of Tata Motors employees last year was Rs 6.66 lakh, an increase of 21.5 percent compared to Rs 5.48 lakh paid in 2015-16. The Mumbai-based company is working on turning around operations and has committed to return to profitability by end of this financial year.
Royal Enfield, the cash-cow of Eicher Motors, has helped Managing Director and CEO Siddhartha Lal improve his pay package by 40 percent to Rs 9.5 crore. Though Lal is the eighth highest paid executive from the auto sector his salary jump is seen to be the highest in the list.
Eicher’s net profit zoomed 46 percent last year while revenues jumped 35 percent. Sales of Royal Enfield bikes increased by 31 percent during the same year. The company is now the third most valuable company behind Maruti Suzuki and Tata Motors.
Joint Managing Director of Chennai-based TVS Motors and son of Venu Srinivasan Sudarshan Venu ranked seventh in the list much ahead of corporate honcho Anand Mahindra and Pawan Goenka, from Mahindra & Mahindra. Sudarshan Venu is the fourth generation entrepreneur from the diversified TVS Group who has spearheaded TVS’s crucial tie-up with the BMW group.