Hero MotoCorp, one of India's leading two-wheeler manufacturers, announced on Wednesday (November 1) that its chairman, Dr Pawan Munjal, will take a voluntary salary reduction of 20%. This decision follows Munjal's earlier move to separate the roles of chairman and CEO within the company.
In a bid to enhance corporate governance and emphasise the division of responsibilities between leadership roles, Munjal decided to appoint a CEO for the company earlier this year.
The board of directors approved this change at its meeting on Wednesday, acting upon the recommendations of the Nomination and Remuneration Committee (NEC).
The reduced remuneration will come into effect from January 1, 2024.
In the fiscal year 2023, Hero Moto paid its Chairman, Pawan Munjal, a total remuneration of ₹99.55 crore, reflecting an 18.02% increase from the previous year.
However, due to a 20% reduction, his anticipated remuneration for the year is expected to be approximately ₹80 crore. In contrast, the median remuneration for the company's employees in FY23 was ₹12.25 lakh.
According to the company's annual report, Niranjan Kumar Gupta, who took on the role of Chief Executive Officer on May 1, 2023, received a total remuneration of ₹7.89 crore in FY23. The details of his approved remuneration for FY24 following his promotion are currently undisclosed.
(Edited by : Shoma Bhattacharjee)
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