Hero MotoCorp Chairman Pawan Munjal volunteers to take 20% pay cut

In FY23, Hero Moto had paid Rs 99.55 crore as remuneration to Pawan Munjal, which was 18.02 percent higher than previous year. After a 20 percent cut, it will be around Rs 80 crore.

Pawan Munjal, Executive Chairman of Hero MotoCorp, has volunteered to take a 20 percent pay cut following separation of the roles of Chairman and Chief Executive Officer of the company.

“Earlier this year, Pawan Munjal decided to separate the roles of the Chairman & CEO and appoint a CEO for the Company. Following this transition, he has now volunteered to reduce his fixed salary by 20 percent. The same was approved by the Board of Directors at its meeting today following the recommendations of the Nomination & Remuneration Committee,” the automaker said in an exchange notification on November 1. .

The updated remuneration of the Executive Chairman will be effective 1st January 2024.

In FY23, Hero Moto paid Rs 99.55 crore as remuneration to Pawan Munjal, which was 18.02 percent higher than previous year. After a 20 percent cut, it will be around Rs 80 crore. In comparison, the median remuneration of employees of the company during the FY23 was Rs 12.25 lakh.

According to company’s annual report, Niranjan Kumar Gupta, who was elevated to Chief Executive Officer from May 1, 2023, was paid Rs 7.89 crore during FY23. It is not clear what is his approved remuneration for FY24 after the promotion.

In a separate notification, Hero MotoCorp said it recorded a 47 percent jump in net profit at Rs 1,054 crore for the quarter ended September 30, 2023. The two-wheeler major had reported a profit of Rs 716 crore in the year-ago period.

The net profit growth in Q2FY24 was driven by higher prices and easing commodity costs.

Revenue from operations increased 4 percent on year to Rs Rs 9445.42 crore in the quarter under review as against Rs 9,075 crore in the last fiscal.

The consolidated revenue and PAT for the quarter was Rs 9,533 crore and Rs. 1,007 crore and for H1, it came in at Rs 18,384 crore and Rs.1,708 crore.