6 THINKING LONG TERM

Jayadev Galla Vice- Chairman and MD, Amara Raja Batteries.

` 38.1 crore (2016/17) ` 39.26 crore (2015/16) JAYADEV GALLA, ViceChairman and Managing Director at home- grown automotive and industrial battery maker Amara Raja Batteries, doesn't want to be a burden on his company. “I will make money when the company makes money,” he says. This, to him, is a fair approach for all promoter-directors. “I take a long term view of my performance over multiple years though my pay is determined by the last one year performance.”

His remuneration structure has been consistent right from the early 1990s. Galla's income is linked to the profitability of the company and is divided into two parts – salary of around ` 2 crore and the balance is commission (5 per cent of net profit), which in 2016/17 was ` 36 crore. With the company's profits dipping in 2016/17, Galla’s package shrunk 3 per cent in the fiscal. Amara Raja's total income rose 4.5 per cent to `6,299.35 crore in 2017/18 while net profit was down 1.5 per cent at ` 471.32 crore.

Galla's thrust is on the career development of employees and becoming globally competitive. The company commissioned its state of the art two-wheeler battery plant in Andhra Pradesh in 2017.

The promoters and promoter group earned a dividend of `37.8 crore in 2016/17. –