The remuneration of Anand G. Mahindra was recommended by GNRC and subsequently approved by the Board of Directors and thereafter by the Shareholders of the Company at the 75th AGM held on 6th August 2021.
A Closer Look Chairman’s Remuneration
Anand Mahindra, Promoter-Chairman of Mahindra & Mahindra Limited, experienced a significant drop in his remuneration for the financial year ended 31st March 2023, according to recent disclosures. Mahindra, of Indian nationality and 67 years of age, has been on the Board for 33 years and 4 months since his appointment on 23rd November 1989. He currently holds 14,30,008 shares, equivalent to a 0.1150% shareholding in the company. His tenure’s ending date remains undisclosed.
Sharp Decrease in Salary and Perquisites
Mahindra’s salary and perquisites for the fiscal year ending on 31st March 2023 came in at Rs. 2.51 crores. When compared to the Rs. 11.67 crores he received in the previous fiscal year 2022, this represents a reduction of approximately 78.5%. The reasons behind this substantial decrease remain unexplained, sparking speculation about the underlying factors.
| Fiscal Year | Salary and Perquisites (Rs. in Crores) | Year-on-Year Change (%) |
|---|---|---|
| 2022 | 11.67 | N/A |
| 2023 | 2.51 | -78.5 |
Changes in Commission and Sitting Fees
Alongside the decrease in salary and perquisites, Mahindra’s commission and sitting fees for the year 2023 also saw a drop, reported as Rs. 2.64 crores compared to Rs. 4.18 crores in 2022. This equates to a reduction of around 36.8%, which aligns with the downward trend observed in his salary and perquisites.
| Fiscal Year | Commission and Sitting Fees (Rs. in Crores) | Year-on-Year Change (%) |
|---|---|---|
| 2022 | 4.18 | N/A |
| 2023 | 2.64 | -36.8 |
No Contributions to Other Funds
Further analysing Mahindra’s remuneration, there has been no contribution made to other funds in the year 2023, which contrasts with the Rs. 0.38 crores contribution made in the fiscal year 2022, indicating a 100% decrease.
Besides his position at Mahindra & Mahindra Limited, Anand Mahindra also holds the position of Chairman, Non-Executive NonโIndependent Director at Tech Mahindra Limited. These figures reflect a significant shift in Anand G. Mahindra’s remuneration structure for the year ended 31st March 2023.
The exact reasons for these decreases, however, remain undisclosed at this time.
Approval Process for Anand G. Mahindra’s Remuneration
The remuneration of Anand Mahindra, Non-Executive Chairman of Mahindra & Mahindra Limited, for the financial year ended 31st March, 2023, has been the subject of approval and deliberation at the company’s highest levels. This process began with a recommendation by the GNRC, followed by approval from the Board of Directors, and finally, the shareholders at the company’s 75th Annual General Meeting (AGM) held on 6th August 2021.
Shareholders’ Approval for Exceptional Remuneration
In a subsequent 76th AGM on 5th August 2022, shareholders granted further approval for Anand Mahindra’s remuneration for the Financial Year 2022-23. This approval was significant, as it allowed for payment of an amount that exceeded 50% of the total annual remuneration payable to all Non-Executive Directors of the Company for the Financial Year 2022-23, pursuant to Regulation 17(6)(ca) of the Listing Regulations.
Breakdown Remuneration
The following table outlines the remuneration paid to Anand Mahindra as Non-Executive Chairman during the year ended 31st March 2023:
| Director(s) | Remuneration (Rs. in Lakhs) | Commission (Rs. in Lakhs) | Total (Rs. in Lakhs) |
|---|---|---|---|
| Mr. Anand G. Mahindra | 250 (Excludes Sitting Fees) | 250 | 500 |
Special Post Retirement Benefit Scheme
In addition to this remuneration, Anand G. Mahindra is entitled to the benefits under the Special Post Retirement Benefit Scheme of the Company.
Anand Mahindra’s Career Progression
Anand Mahindra’s tenure has seen the Group expand domestically and internationally into a range of major industrial sectors from automobiles and agriculture to IT and aerospace.
| Year | Position | Key Events and Responsibilities |
|---|---|---|
| 1989 | Director | Appointed to the Board of Directors on 23rd November, 1989 |
| 1991 | Deputy Managing Director | Took over as Deputy Managing Director when the company turnover was US$ 177 million. |
| 1997 | Managing Director | Appointed as Managing Director of Mahindra & Mahindra Limited in April. |
| 2001 | Vice Chairman | Given additional responsibility as Vice Chairman in January. |
| 2012 | Chairman & Managing Director | Appointed as Chairman and designated as Chairman & Managing Director in August. |
| 2016 | Executive Chairman | Re-designated as Executive Chairman of Mahindra & Mahindra Limited in November. |
Anand Mahindra’s Leadership Roles Across Various Organizations
| Position | Organization |
|---|---|
| Chairman | Mahindra & Mahindra Limited |
| Chairman | Tech Mahindra Limited |
| Chairman | Mahindra Holdings Limited |
| Chairman | Classic Legends Private Limited |
| Director | Prudential Management & Services Private Limited |
| Director | The Mahindra United World College of India |
| Director | Tech Mahindra Foundation |
| Director | Araku Originals Private Limited |
| Director | Naandi Community Water Services Private Limited |
| Director | Breach Candy Hospital Trust |
| Director | Invest India |
| Director | The Indian and Eastern Engineer Company Private Limited |
| Part-time non-official Director | Central Board of the Reserve Bank of India |
Also Read: Tech Mahindra Directors’ Earnings: Experience Pays Off Big
