Ashok Leyland significantly increased remuneration for its senior leadership in FY26, with Managing Director and Chief Executive Officer Shenu Agarwal's total pay rising 49% year on year to ₹18.32 crore, according to the company's annual report filed with the stock exchanges on Monday.
The report also shows higher remuneration for Executive Chairman Dheeraj G. Hinduja and Chief Financial Officer K.M. Balaji, while Whole-time Director Gopal Mahadevan recorded a decline in total pay during the financial year.
CEO and CFO record the biggest pay increases
Among the company's disclosed executive remuneration, Agarwal's package increased from ₹12.30 crore in FY25 to ₹18.32 crore in FY26.
His remuneration comprised:
- ₹18.16 crore in short-term employee benefits.
- ₹0.16 crore in other long-term employee benefits.
The sharpest percentage increase was recorded by K.M. Balaji, whose remuneration rose by nearly 58% to ₹7.45 crore, compared with ₹4.72 crore in the previous financial year.
Balaji assumed the role of Chief Financial Officer in June 2024 and has now been proposed for appointment as Whole-time Director and CFO.
Chairman's remuneration grows at a slower pace
Executive Chairman Dheeraj G. Hinduja received total remuneration of ₹31.25 crore in FY26, compared with ₹28.73 crore in FY25, representing an increase of about 9%.
His remuneration included:
- ₹31.17 crore in short-term employee benefits, up from ₹28.65 crore.
- ₹1.32 crore in commission and sitting fees, compared with ₹0.80 crore in FY25, an increase of around 65%.
The annual report also disclosed that the aggregate commission and sitting fees paid to other directors increased to ₹11.69 crore, up from ₹9.30 crore a year earlier.
One executive sees lower remuneration
Unlike the other disclosed executives, Whole-time Director Gopal Mahadevan received lower total remuneration in FY26.
His compensation declined to ₹13.73 crore from ₹14.65 crore in FY25.
The annual report attributes the difference to ₹0.84 crore in share-based payment included in FY25, which was not recorded in FY26.
Board proposes new remuneration packages
Alongside the remuneration disclosures, Ashok Leyland has proposed revised compensation structures for the next terms of Dheeraj G. Hinduja and K.M. Balaji.
For Hinduja's proposed three-year tenure as Executive Chairman, the company has proposed:
- Fixed annual compensation of ₹15.50 crore
- Annual performance pay and commission of ₹17.50 crore
If paid in full, the proposed package would amount to ₹33 crore annually, before additional perquisites and allowances.
For Balaji's proposed tenure as Whole-time Director and CFO, the company has proposed:
- Fixed annual compensation of ₹3.85 crore
- Annual performance pay and commission of ₹1.65 crore
This would result in a potential annual remuneration of ₹5.50 crore, excluding other benefits.
Board retains flexibility over executive compensation
According to the annual report, the proposed remuneration structures allow the Nomination and Remuneration Committee and the Board of Directors to revise compensation during the executives' tenure, subject to applicable statutory limits and shareholder or regulatory approvals where required.
The disclosures provide shareholders with a detailed view of Ashok Leyland's executive compensation strategy while outlining the proposed remuneration framework for key leadership appointments in the coming years.