BHARGAVA BACKS EXEC. PAY CURBS IN PANDEMIC TIMES
New Delhi, Aug. 24: Company managements need to "curtail the kind of expenditures on themselves personally" with the pandemic highlighting the need to build internal resources with a frugal style of functioning, Maruti Suzuki India chairman R. C. Bhargava said on Tuesday.
Addressing shareholders at the company's annual general meeting held virtually, he also termed as "a good development for the whole of industry" recent shareholder actions that did not approve expenditures by management on themselves, without specifying details.
In the wake of the pandemic, building internal resources has to become a priority of industry and companies. It requires companies to have a more frugal style of management, he said.
"Management themselves need, I think, to curtail the kind of expenditures on themselves personally. Recent shareholder action seems to suggest why a section of shareholders share this view and are voting on these lines and I think that's a good development for the whole of industry," Bhargava said without elaborating.
Commenting on the learnings from the pandemic, Bhargava said companies which had strong financial reserves, which were generating internal resources and kept reserves were the ones best able to tide over the difficulties created by Covid-19.
"They were able to look after their manpower and employees and to come back to the production required as quickly as possible," he said, adding companies have to have the resilience to face the kind of Covid crisis.—