JLR Honchos' Bonuses Tied to Tata Motors Stock Price

It said in its report for 2024-25 that it introduced a cash-settled incentive plan last year

- Ayaan Kartik

The annual bonuses of Jaguar Land Rover Ltd's senior executives now partly depend on the performance of parent Tata Motors Ltd's shares, with so-called 'phantom stocks' substituting for regular stock options or bonuses.

The decision comes at a time when JLR, Tata Motors' UK-based subsidiary, faces growth challenges amid a slowdown in the Chinese automobile market and the US's reciprocal tariffs, which could make premium cars such as Jaguar and Land Rover more expensive.

JLR said in its annual report for 2024-25 that it introduced a cash-settled long-term incentive plan last year for certain employees.

The incentive plan, which replaces JLR's annual strategic bonus programme, is a phantom share scheme to reward the company's senior executives based on business results and valuation. These are not real stocks and do not give equity ownership in the company but mirror the value of Tata Motors' shares.