as specified in the explanatory statement to the resolution, states that even if the company has no, or inadequate profit in any financial year, the company will pay him “remuneration by way of salary, benefits, and perquisites and allowances, bonus/performance linked incentives as approved by the Board and to the extent permitted under the (Companies) Act.”
Narendran’s proposed pay package stands at R4.83 crore, including R4 crore as commission to be paid in the current fiscal.
Earlier this month, the shareholders of Tata Motors had rejected a proposal for the payment of remuneration, in excess of their minimum entitlement, to three executive directors of the company. Tata Motors had to seek the shareholders’ approval through a special resolution (which didn’t garner enough votes to be passed) since the company had “inadequate” profits in FY14.
In his statement to shareholders that is a part of the annual report, Tata Steel’s chairman Cyrus P Mistry said that there were “significant expectations” from the new Narendra Modi-led government to spur investment in infrastructure in the country, thereby providing a fillip to the steel industry as well.
“Steel as a foundation industry will play a significant role in this journey and therefore it is very important for policymakers and the government to facilitate a robust supply side framework as an enabler for a vibrant steel industry in the country,” Mistry said.