Tata Motors Limited (ADR) (TTM) Shareholders Vote to Claw Back Compensation Package Paid to its Late India Head

In a news item coming out today from its Mumbai bureau, Bloomberg TV’s Sunanda Jayaseelan reported that in a rare display of investor activism, the share holders of Tata Motors Limited (ADR) (NYSE:TTM), rejected the compensation package of $2.6 million that the company had announced as payout for its former India head Karl Slym, who died in January this year under tragic circumstances.

Tata Motors Limited (ADR) (NYSE:TTM)

The report went on to highlight that the rejection of the compensation package by the share holders of Tata Motors Limited (ADR) (NYSE:TTM), (which is the biggest commercial vehicle manufacturer in the country) to Mr. Slym’s grieving family as a surprise development. The report goes on to claim that this was one of the first instances of decisive investor activism in corporate India, where in share holders have rejected a compensation offer, which has already been paid out by the company to the grieving family members of Mr. Slym.

Jayaseelan goes on to underscore that since Tata Motors Limited (ADR) (NYSE:TTM) failed to get the required approval of 75% of  its shareholders for Mr. Slym’s compensation package, the family members of Mr Slym are likely to be compelled to payback the nearly $2.6 million. The same report also goes on to indicate that the share holders of Tata Motors Limited (ADR) (NYSE:TTM)have also decided to reject the payout recommendations of two of its directors along with Mr Slym’s package.

While analysing the display of this surprisingly robust activism by Indian investors, Jayaseelan goes on to explain that in the recent past quarters, Tata Motors Limited (ADR) (NYSE:TTM) overall performance has come under immense pressure due to the steady slowing down in demand for its passenger vehicles in India and other markets, on a month on month compare. She also goes on to opine that, the “threat of a deficient monsoon” in the country this year, is also going to impact the expected pickup in demand for its commercial vehicles.

Tata Motors Limited (ADR) (NYSE:TTM), which owns the popular luxury segment icons Jaguar and Land Rovers and generated 80% of its revenue from the sale of these two brands, would have been in even greater financial stress in this fiscal, if not for the close to 10 billion Rupees ($167 million) tax refund it was awarded by the tax authorities this year.

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!