MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

COMPANY OVERVIEW RISE TO CREATE VALUE RISE TO BE FUTURE READY RISE FOR A MORE EQUAL WORLD CORPORATE INFORMATION STATUTORY REPORTS FINANCIAL STATEMENTS Mahindra & Mahindra's Automotive & Farm Equipment Sector is a Great Place to Work - Certif ied™ organisation and has been recognised among India's Best Companies to Work For 2022 - Rank 24. It excels on the f ive dimensions of a High-Trust, High-Performance Culture™ – Credibility, Respect, Fairness, Pride and Camaraderie. PERFORMANCE ORIENTED REMUNERATION We believe our compensation and remuneration policy is well aligned to encourage meritocracy as well as ESG actions. Our compensation structures are designed to shape employee's behaviour to deliver in a high-performance culture. All off icers across the organisation have part of their compensation apportioned as variable pay (performance pay) payable based on individual as well as business/ organisational goals. The percentage of the variable component increases with increasing hierarchy levels. The parameters used include Return on Equity (ROE), EPS growth, ESG performance index and Employee A GREAT PLACE TO WORK UNDER MULTIPLE DIMENSIONS Engagement level. ESG Performance Index consists of intermediate targets on our ambition to lead ESG globally. We also have an Employee Stock Option Program (ESOP) for senior executives of the Company, which ensures the alignment of interests between the shareholders and employees. 11,673 Mahindra's Making Sustainability Personal (MSP) initiative aims to make sustainability second nature for employees so that they contribute to a sustainable future even beyond the work. Under this initiative, various workshops, quizzes and celebrations were conducted throughout the year, in which more than employees participated. TALENT MANAGEMENT AND LEADERSHIP DEVELOPMENT Our talent management process focuses on building succession strength, creating development journeys and learning interventions to attract, retain and develop top talent across the Group. At the Group level, this process is anchored through 'People Conversations' to provide an overview of talent across the Group and enable talent movements across sectors basis individual strengths and aspirations. Each sector anchors talent management and talent development through the respective Sector Talent Councils. FUNCTIONAL TALENT ACCELERATORS In our quest to build a healthy pipeline of technical talent in Product Development and associated areas, we set up the Mahindra Research Valley (MRV), which serves as a crucible for innovation and technology for the Auto and Farm Divisions. Through MRV's unique concept of 'Tech Ladder', we identify and cultivate technical talent by working on performance management, talent management and capability building. The Tech Ladder framework successfully caters to more than 2,000 engineers, covering multiple Centres of Excellence (CoE) and project functions across Automotive and Farm Divisions. 41