IPO-bound Ather Energy has approved revised compensation for co-founders Tarun Mehta, also the chief executive officer (CEO), and Swapnil Jain, who is the chief technology officer (CTO) of the Bengaluru-based electric two-wheeler manufacturer.
Meha and Jain, reappointed for another five-year term starting May 30, will draw an annual remuneration of Rs 3 crore each this fiscal, effective August 1.
The compensation structure comprises Rs 2.1 crore in fixed pay, including basic salary, housing rent allowance, special allowances, provident fund, gratuity, and insurance, and Rs 90 lakh in variable pay, the company's Red Herring Prospectus says.
The company's board and shareholders have also cleared a provision to increase this annual remuneration to up to Rs 5 crore each in years when Ather reports inadequate or no profits.
This provision is in line with Section 197 of the Companies Act, 2013, which governs managerial compensation in such scenarios.
For FY25, the founders will receive Rs 2.784 crore each, slightly below the approved ceiling, indicating a cautious approach as the company navigates its public market transition.
This move comes as Ather prepares to file its Draft Red Herring Prospectus (DRHP) for an initial public offering expected to raise around Rs 2,626 crore in fresh issue.
According to the company's RHP, the IPO will include a mix of fresh issuance and an offer for sale by existing investors. Tiger Global, Hero MotoCorp, and Flipkart co-founder Sachin Bansal are among Ather’s prominent backers.
In FY24, Bhavish Aggarwal, founder and CEO of rival Ola Electric, received a total remuneration of Rs 2.88 crore.
This marked a significant increase from the symbolic Re 1 salary he drew in FY23. The revised compensation was part of a new salary structure approved by Ola Electric's board in December 2023, allowing Aggarwal to earn up to Rs 9 crore annually over the next five years.
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