Tata Sons top boss N Chandrasekaran feels that JLR MD's £7M pay is 'appropriate'

At a time when top management compensation has become a talking point, it is natural to expect questions from anxious shareholders at the annual general meeting of a loss-making company. Tata Sons chairman N Chandrasekaran had to take questions from Tata Motors shareholders on the subject, as he chaired the company's AGM in Mumbai last week. The compensation of Jaguar Land Rover MD Ralf Speth and the broader board of directors was asked about.

Chandra supported the existing compensation policies for both. But first he lauded JLR for its "exceptional performance" while it took on competition like "Mercedes Benz and BMW". He said it was impossible to provide the kind of results that JLR had posted without "enormous hard work". That said, he turned towards the subject of salary.

"So, you have to appreciate that this journey will continue in order to gain that momentum. I just want to correct the perception that JLR is not giving back. JLR has a very aggressive growth plan and it will continue. And the salary of the MD [Speth] is not high at all. If you compare it with similar companies, companies that I mentioned — and we have done a survey — it is an appropriate salary. In fact, slightly on the lower side. So, I hope that all the shareholders will support me," Chandra said.

When asked for a number by a shareholder, he responded with "roughly around £7 million pounds". That is approximately Rs 57 crore per year.


N Chandrasekaran and Ralf Speth (Image: PTI)

As for the fees for directors, he said, "They are extremely busy people. And, on an average, we hold about 40 meetings in a year. They [board of directors] all make it a point to attend, either in person or over a video link, sometimes at 12 in the night, sometimes at 2 in the morning, depending on where they are. I just want us to appreciate the enormous amount of dedication all of them bring to the table."

He added that they were not getting paid highly as the company was making a loss. "They are taking only a token amount as sitting fees," he said.