Tata Motors has sought shareholders’ approval to ratify the payment of minimum remuneration to Guenter Butschek, MD and CEO due to the losses incurred by the company in fiscal 2019-20.
It is seeking the shareholders nod for consequent waiver of recovery of a part of the minimum remuneration that is in excess of the prescribed limit, according to company’s latest annual report. The move is in line with the provisions of the Companies Act.
Butschek was paid Rs16.48 crores, as per the terms of his appointment for a tenure of 5 years effective February 15, 2016. “It is observed that the managerial remuneration paid to him exceed the prescribed limits under Rs11.82 crores.
As per the provisions of the Companies Act, 2013 the excess remuneration is subject to approval of the Shareholders which the Company proposes to obtain in the forthcoming AGM, the company said.
The total remuneration of 16.4 crore paid to him in the year under review is 37 per cent less than what it was in fiscal 2018-19. It was a total of Rs 26.4 crore.
Tata Motors has been reported a loss in seven of the last nine quarters. In April to June quarter company’s revenue fell 48 per cent year-on-year to Rs 31,983 crore—higher than analyst estimates. Operating profit fell 79 per cent to Rs 653.3 crore. Margin narrowed to 2 per cent compared with 4.87 per cent earlier.