No Easy Road for Ashok Leyland

Published: Jul 26, 2013 07:05:17 AM IST
Updated: Jul 24, 2013 05:13:13 PM IST
No Easy Road for Ashok Leyland

Dheeraj Hinduja (in photo),  chairman of Ashok Leyland, India’s second-largest truck manufacturer, got a taste of shareholder activism at the company AGM on July 16. During a three-hour meeting, shareholders expressed displeasure at everything including results performance, dividend payout last fiscal (60 paise per share versus Re 1 the previous year) and the fee to MS Dhoni, the brand ambassador.

They were also miffed at non-executive vice chairman R Seshasayee’s Rs 3-crore salary. They said he should take a cue from NR Narayana Murthy’s Re 1 salary. Hinduja later said, “This took more time than a Hindi or a Tamil film.”

In the April-June quarter, Leyland reported a loss of Rs 142 crore compared to a profit of Rs 67 crore in the same period last year.

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(This story appears in the 09 August, 2013 issue of Forbes India. You can buy our tablet version from Magzter.com. To visit our Archives, click here.)

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  • Googly2007@gmail.com

    Well said investors. These guys should get some heat on taking those huge salaries when company is making loss.

    on Jul 26, 2013
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