It grew at a faster pace than the market, gained market share, improved profitability, broke even at an underlying profit-beforetax level and generated positive free cashflows.The board approved increments and bonus that will reflect the strong performance. Turnaround 2.0, the next phase of its strategy, places emphasis on sustaining the strong performance of the commercial vehicle business and making the passenger vehicle division profitable.The company had free cashflows of Rs 1,339 crore for the year, which was a first in five years. Tata Motors registered growth of 19% and 17% in the commercial vehicle and passenger vehicle segments, respectively, in FY18.To drive the performance culture, the company’s increment and incentive framework has been differentiated substantially, based on performance levels, a Tata Motors spokesperson told ET.“Additionally, to further align results and rewards over the long term and also to ringfence top talent, we are introducing the Long-Term Incentive Plan for the top talent — about 200 in number — subject to approval of our shareholders,” the spokesperson added.The company has handed out an average increment of 10% for the lower level staff, which is double that of the previous year and higher than the industry average. The bonus was set at 100% compared with an average of 50-60% in the previous financial year.The salary increases are in line with the new increment and incentive framework, which rewards higher performance levels with a much better increase than lower performance levels.Also, the increments this year are higher for staff at the lower levels of management. Level 5 employees, which are larger in number, have been given a higher average increase compared with those at more senior management levels.

Source: Economic Times May 26, 2018 01:46 UTC