In a first at Mahindra, MD's pay package surpasses that of Chairman's

Remuneration data for the period before Keshub Mahindra handed over the reins of the company to his nephew is not available. From the time he took over till the end of FY16, Anand Mahindra was both chairman and MD.

In 2016-17, Goenka, who was appointed as an executive director on M&M's board in 2013-14, was promoted to the post of managing director. Mahindra, meanwhile, continued to hold the post of executive chairman.

But a managing director getting paid more than a company's chairman is not an unusual occurrence in the automotive industry.

Bajaj Auto Managing Director Rajiv Bajaj draws a remuneration that is higher than that of his father Rahul Bajaj, who is still the chairman of the company.

Similarly, Tata Motors MD and CEO Guenter Butschek gets paid more than than the company's Chairman N Chandrasekaran. The same is the case with Eicher Motors MD and CEO Siddhartha Lal.

Better financial performance

Despite a significant rise in competition in the utility vehicle (UV) segment in which M&M operates, the company was able to report a double-digit rise in net profit in FY18.

While the automobile manufacturer has been losing market share in the UV segment because of the emergence of Maruti Suzuki and Hyundai, the performance of its tractor business exceeded expectations last year.

With a 43 percent market share in the tractor segment, the company clocked sales of 3.04 lakh units in the domestic market, 22 percent higher than the number it sold in 2016-17.

In FY18, for every Rs 100 of profit before tax that M&M made, nearly Rs 50 came from the farm equipment segment (FES), including from the sale of tractors.

To be precise, the segment generated a profit of Rs 3,145 crore, 23 percent higher than in the previous year. This was higher than the profit of M&M's automotive segment, which came in at Rs 2,872 crore.