Eicher Motors re-appoints Siddhartha Lal as managing director

Shareholders questioned the company’s rationale of increasing Lal’s salary by 10% in FY21, even as the median employee salary had increased by only 1%.

“Given the background of actual remuneration paid to the MD in preceding years, the Board has now approved a revised remuneration structure for the post, with a maximum cap of 1.5 per cent of profits as per Section 198 of the Companies Act,” Eicher said in a filing.

The development comes just days after Vinod Dasari quit as the chief executive of Royal Enfield, the iconic maker of the Bullet brand motorcycles and a division of Eicher Motors, which quickly appointed chief operating officer B Govindarajan to drive the show.

Lal is credited with turning around Eicher Motors’ fortunes through his razor-sharp focus on building the Royal Enfield brand and striking a joint venture deal with Swedish truck and bus maker Volvo.

Royal Enfield, a part of Eicher Motors, is a leading player in the mid-sized motorcycle segment with presence across domestic as well as international markets. In addition to motorcycles, Eicher motors has a joint venture with Sweden’s AB Volvo VE Commercial Vehicles Limited (VECV).