Ashok Leyland CEO Shenu Agarwal’s Pay Jumps 48% Amid Shift to Phantom Stock Units

Ashok Leyland Limited is resetting its leadership compensation for the upcoming fiscal years, proposing a Rs 33 crore annual package for Executive Chairman Dheeraj G Hinduja, and reporting double-digit pay hikes for its CEO and CFO following record-breaking performance in FY2025-26. The revised structure, which includes the elevation of CFO K M Balaji to the board, shifts the company’s long-term incentive strategy away from traditional stock options toward performance-linked commissions and cash-settled phantom stock units.

The Board of Directors has recommended the reappointment of Mr. Dheeraj G Hinduja as Executive Chairman for a three-year term effective November 26, 2026. Under the proposed terms, Hinduja’s total annual remuneration target is set at Rs 33 crore, comprising Rs 15.50 crore in fixed compensation and Rs 17.50 crore in performance-based commission

This structured approach follows a year in which his actual remuneration totaled Rs 31.24 crore, representing a pay ratio of 197.23 times the median employee salary.

Shenu Agarwal, Managing Director and CEO, saw his remuneration rise by 48.27% in FY2025-26, reaching Rs 18.23 crore.

In the finance function, K M Balaji has been elevated to the Board as Whole-time Director and CFO for a two-year term starting May 28, 2026. His new compensation package includes a fixed component of Rs 3.85 crore and an annual performance commission of Rs 1.65 crore. 

A notable shift in the company’s long-term incentive strategy occurred during the year. Ashok Leyland terminated its 2018 Employee Stock Option Plan (ESOP) after performance parameters were not met, resulting in the forfeiture of all 1.76 crore outstanding options. In its place, the company has introduced cash-settled incentives, granting over 2.68 crore Phantom Stock Appreciation Rights (PSARs) and 15.87 lakh Phantom Restricted Stock Units (PRSUs) to eligible employees.