Amara Raja Group's senior management's FY21 salaries halve; Up to 25% cut for employees

Reduced amount will be reconstituted as ‘Business Performance Linked Pay’ (BPLP) in the compensation structure for the balance of ten months of FY21.

Jun 03, 2020 03:06 IST India Infoline News Service

Amara Raja
Amara Raja Batteries on Wednesday, informed that the group has revised annual remuneration during the current financial year FY21 amid Coronavirus pandemic. The stock price of Amara Raja Batteries ended at Rs650.45 per piece on Sensex down 2.17% post announcement.

As per the filing, Amara Raja Group promoters holding the office of Managing Directors in various business, have voluntarily decided for a 50% reduction in their total remuneration for FY21.

Meanwhile, for staff and employees, the salaries will be reduced in the range of 10% to 25%. Such would be applicable to junior and senior levels employees of the group.

Further, the company announced that the reduced amount will be reconstituted as ‘Business Performance Linked Pay’ (BPLP) in the compensation structure for the balance of ten months of FY21.

If the business meets satisfactory levels of recovery and performance, the group will reward the reduced amount back to the employees as BPLP.

Jaikrishna B, President (Group HR) – Amara Raja Group, "Considering the unprecedented uncertainty, we believe each one of us at the Amara Raja Family must contribute collectively in bouncing back from this adversity. The announcement of an innovative ‘Business Performance-linked Pay’ scheme is a measure of creating a winning proposition for both our People and Businesses. The scheme aims at rewarding employees in the next financial year if the businesses recover and get back to the required levels of performance. As always, our motto remains, ‘Gotta be a better way’. Thereby, the announcement of this scheme makes it better for everyone.”

Notably, the BPLP application will be available only for staff and management grade employees.

There will be no salary reduction for workmen grade and all category of trainees in FY21. Also, similar will be the case for staff employees below a certain threshold salary.

The Amara Raja management is aggressively looking at opportunities for managing overall costs with appropriate austerity measures while enabling the organisation to navigate through these uncertain times.

Related Story