MUMBAI, July 3 Shareholders of Tata Motors Ltd
, India's biggest auto manufacturer by revenue, have
rejected a pay proposal for three of its directors, the company
said in a notice to the stock exchange on Thursday.
Indian companies law introduced last year requires listed
firms that make a low or no profit to limit the salary they pay
to their executives, depending on the size of the company. To
exceed the limit, firms need approval from 75 percent of
Tata Motors had sought shareholder approval not to reclaim
31.95 million rupees ($534,900) from executive director of
commercial vehicles Ravindra Pisharody, 24.36 million rupees
from executive director of quality Satish Borwankar and 146.4
million rupees from the legal heir of late managing director
Karl Slym for the fiscal year ended March 31.
These amounts are in excess of what is proposed by the
companies law when an entity makes a low or no profit for that
fiscal year. Tata Motors posted a loss of 8.2 million rupees for
its India unit in the fiscal year ended March 31 compared with a
profit of 12.5 million a year ago.
Only 70 percent shareholders voted for the proposal,
according to the statement by Tata Motors.
"The company takes cognisance of the shareholders' views; at
the same time, it is necessary to balance this with
recruiting and retaining an industry-proven management
team through the long-term," a spokeswoman said in an emailed
"The company is currently considering its options and will
move ahead taking into account this commitment to the best and
most equitable interests of all stakeholders," she said.
($1 = 59.7350 Indian Rupees)
(Reporting by Aditi Shah; Editing by David Holmes and David