India maybe the largest car market for Suzuki Motor Corp, but the remuneration package for the five Indians on the board of Maruti Suzuki India Ltd (MSIL) is no match for their Japanese counterparts.
Ever since Jagdish Khattar retired from Maruti Suzuki India Ltd in December 2007, no Indian has ever been appointed in an executive role on the board of directors of the firm. Of the 11 directors in the company today, six are Japanese, including the four executive directors. Of the five Indians, RC Bhargava leads as the non executive Chairman, the four others being independent directors.This constitution skews the remuneration packages of the board in favour of the Japanese.
The four executive directors get in excess of Rs. 1.9 crore each with the MD and CEO, S Nakanishi, netting the highest at Rs. 2.8 crore. Compared to that, Bhargava is the highest paid among the Indians with a total salary of just Rs. 34.4 lakh.
Incidentally, the chairman of parent firm Suzuki Motor Corp, Osamu Suzuki, chooses to not take any remuneration for being on the board.
“It drills holes into Suzuki san’s assertions that all employees at Maruti are part of one big Suzuki family,” said a senior Indian executive at Maruti.
“The ties have strengthened over the years but even now its only the Japanese who are trusted,” he added.
This is in stark contrast to the time when Khattar was at the helm.
* At the time of his retirement in 2007-08, he was drawing a salary of R3.2 crore per annum which was well in excess of Hirofumi Nagao’s Rs. 1.4 crore —the best paid Japanese then.