Rediff.com  » Business » Jaguar Land Rover CEO Ralf Speth's salary falls 42% in two years

Jaguar Land Rover CEO Ralf Speth's salary falls 42% in two years

July 04, 2019 18:23 IST

JLR, the maker of Jaguar F-Type and Range Rover Evoque, was a jewel in the crown of Tata Motors till two years back.
But, it has been struggling because of the pending Brexit, a sharp contraction in sales in China, a shift in consumer preference from diesel to gasoline in Europe, higher taxes on diesel vehicles, and tightening regulations.

Jaguar Land Rover Automotive (JLR)’s chief executive officer Ralf Speth’s compensation crimped 42 per cent in two years in the midst of headwinds facing the UK subsidiary of Tata Motors.

At the same time, the pay of Tata Motors CEO and managing director Guenter Butschek rose 14 per cent, according to the 74th annual report of the company.

 

In the year ending March 2019, Speth drew a total compensation of Rs 32 crore, down 20 per cent over 2017-18.

In 2016-17, he took home Rs 55 crore as compensation.

Speth, 55, has been at the helm of JLR since February 2010 and has been instrumental in enhancing the footprint of the marquee brand in several geographies and leading the company into newer segments through new models and alternative technologies such as electric and hybrid.

JLR, the maker of Jaguar F-Type and Range Rover Evoque, was a jewel in the crown of Tata Motors till two years back.

But, it has been struggling because of the pending Brexit, a sharp contraction in sales in China, a shift in consumer preference from diesel to gasoline in Europe, higher taxes on diesel vehicles, and tightening regulations.

In China, one of the largest and profitable markets, JLR’s sales declined 34 per cent year on year in FY19.

JLR reported revenue of £24.2 billion in FY19, down 6.2 per cent over a year ago.

This came on the back of 6.9-per cent contraction in wholesale volumes (excluding Chery JLR).

In a letter to the shareholders, N Chandrasekaran, non-executive chairman, Tata Motors, and chairman, Tata Sons, wrote, “JLR is taking steps to cut costs while taking a calibrated approach towards future investment in the product portfolio.”

He said the company was “actively looking at partnerships and prioritizing its investments” while ensuring that it was not compromising its future.

“These are critical interventions and JLR is committed to deliver cost and cash improvements,” he wrote.

Butschek, who took the top job at Tata Motors in February 2016, drew a total compensation of Rs 26.32 crore in FY19 against Rs 26.42 crore in FY18 and Rs 23 crore in FY17.

He is credited for turning around the company’s commercial and passenger vehicle business through series of operational efficiency measures and new product introduction.

Led by a strong volume growth and market share gains in the CV and PV business, Tata Motors’ revenue grew 18 per cent to Rs 69,203 crore in FY19.

It resulted in an increase in EBITDA margins to 7.4 per cent during the year as against 4.1 per cent a year ago.

The company’s profit before and after tax (including joint operations) for the year were at  Rs 2,399 crore and Rs 2,021 crore, respectively as compared to a loss before and after tax (including joint operations) of Rs 947 crore and Rs 1,035 crore, respectively for FY18.

Photograph: Toby Melville/Reuters

Shally Seth Mohile in Mumbai
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