Page 81 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
1-59 Board's Report 147-300

u Remuneration for Managing Director (‘MD’)/ • In addition to the basic/fixed salary, benefits,
Executive Directors (‘ED’)/KMP/rest of the perquisites and allowances as provided above,
employees 1 the Company provides MD/EDs such remuneration
The extent of overall remuneration should be sufficient to by way of commission, calculated with reference to
attract and retain talented and qualified individuals suitable the net profits of the Company in a particular financial
for every role. Hence remuneration should be - year, as may be determined by the Board, subject to
the overall ceilings stipulated in Section 197 of the Act.
• Market competitive (market for every role is defined as The specific amount payable to the MD/EDs would
companies from which the company attracts talent or be based on performance as evaluated by the Board or
companies to which the company loses talent)
the NRC and approved by the Board.
• Driven by the role played by the individual
• The Company provides the rest of the employees a
• Reflective of size of the company, complexity of performance linked bonus. The performance linked
the sector/industry/company’s operations and the bonus would be driven by the outcome of the
company’s capacity to pay performance appraisal process and the performance of

• Consistent with recognised best practices and the Company.
• Aligned to any regulatory requirements.
u Remuneration payable to Directors for services
In terms of remuneration mix or composition, rendered in other capacity
• The remuneration mix for the MD/EDs is as per the The remuneration payable to the Directors shall be inclusive
contract approved by the shareholders. In case of any of any remuneration payable for services rendered by such
change, the same would require the approval of the Director in any other capacity unless:
shareholders.
(a) The services rendered are of a professional nature; and
• Basic/fixed salary is provided to all employees to ensure
that there is a steady income in line with their skills and (b) The NRC is of the opinion that the Director possesses
experience. requisite qualification for the practice of the profession.
• In addition to the basic/fixed salary, the Company Policy implementation
provides employees with certain perquisites,
allowances and benefits to enable a certain level The NRC is responsible for recommending the remuneration
of lifestyle and to offer scope for savings and tax policy to the Board. The Board is responsible for approving and
optimisation, where possible. The Company also overseeing implementation of the remuneration policy.
provides all employees with a social security net
(subject to limits) by covering medical expenses and On behalf of the Board of Directors
hospitalisation through re-imbursements or insurance
cover and accidental death and dismemberment N. Chandrasekaran
through personal accident insurance. Chairman
DIN: 00121863
• The Company provides retirement benefits as
applicable. Mumbai, May 3, 2021

1 Excludes employees covered by any long term settlements or specific term contracts. The remuneration for these employees would be driven by the respective long
term settlements or contracts.

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