MUMBAI, June 30, 2025: Mahindra & Mahindra has defied the conventional corporate pay structure in its FY25 annual report. The company’s top two executives, Group CEO Dr Anish Shah and Auto & Farm CEO Rajesh Jejurikar, collectively earned 85.6 crore, approximately seven to eight times the Chairman’s compensation, while Chairman Anand Mahindra received 5.62 crore, a slight 9.13% increase.
Shah and Jejurikar profited greatly from a sharp increase in both fixed pay and employee stock options, while Mahindra, as non-executive chairman, does not receive stock options and is compensated through commissions and sitting fees. Shah’s total compensation increased to ₹47.33 crore, of which ₹30.18 crore came from ESOPs and ₹17.15 crore from fixed and performance-linked pay, a 12.98% increase from the previous year. In total, Jejurikar received ₹38.27 crore, which included ₹23.9 crore from ESOPs and ₹14.37 crore in fixed pay (up 12.35%). Nearly two-thirds of both executives’ total compensation came from stock options alone.
The significant difference highlights a purposeful change in Mahindra & Mahindra’s executive compensation approach, which now largely bases payouts on long-term performance and shareholder value. Despite serving as the board chair, Mahindra received a much smaller package, which furthers the company’s practice of restricting promoter pay.
The company is requesting shareholder approval to increase the chairman’s compensation to ₹6.05 crore for FY26 (April 2025 to November 2026), which may surpass 50% of the total pool designated for non-executive directors and necessitates a special resolution. This unusual pay dynamic occurs at the same time.
On a larger scale, the FY25 data shows a pay structure in which C-suite executives at India Inc. are increasingly compensated for promoting global expansion, business transformation, and operational excellence, particularly in high-growth industries like clean mobility, agri-tech, and EVs, while legacy board leadership positions are primarily symbolic and governance-focused.
Modest Gains for Employees, Soaring Exec Pay
While top executives saw sizable bumps in earnings, median employee remuneration at M&M rose by a more modest 5.69% to ₹11.52 lakh. Non-managerial employees received an average hike of 10.16%, while managerial salaries (excluding ESOPs) surged 83.91%, driven by bonuses and variable pay structures tied to business performance.
In FY25, the company’s total employee benefit expenses increased from ₹4,463 crore to ₹4,881 crore. In an effort to reduce gender disparities in its workforce, wages paid to female employees made up 8.05% of the total, up from 6.55% in FY24.
Increase in Boardroom Remuneration
Higher compensation for independent and non-executive directors was also disclosed in the annual report. Compared to FY24, T.N. Manoharan received ₹1.01 crore, a significant 62.9% increase. ₹0.82 crore was earned by Shikha Sharma. Muthiah Murugappan and Nisaba Godrej each received ₹0.84 crore in commission, in addition to ₹9.6 lakh and ₹13 lakh in sitting fees.
