As IPO fever grips India’s electric vehicle sector, Bengaluru-based Ather Energy is making deliberate, strategic moves—not just on the factory floor, but also in the boardroom. The company has revised the compensation packages for its co-founders Tarun Mehta (CEO) and Swapnil Jain (CTO) as it preps for its stock market debut. The numbers are modest, the message clear: Ather is choosing discipline over dazzle as it enters the public spotlight.
Credits: Money Control
Five More Years at the Helm
Both Mehta and Jain have been reappointed for another five-year term, starting May 30, 2025. Their leadership, which helped Ather go from a garage startup to a serious contender in the EV space, will now continue with a revised pay structure.
For FY25, each founder will take home ₹2.784 crore, slightly below the board-approved ceiling of ₹3 crore. The package includes:
₹2.1 crore fixed pay, which covers basic salary, house rent allowance, special allowances, provident fund, gratuity, and insurance.
₹90 lakh variable pay, tied to performance.
Contingency Clause: Upping the Cap When Profits Dip
Here’s where it gets interesting. In years when the company posts inadequate or no profits, the board has allowed a provision to increase the founders’ remuneration to up to ₹5 crore each. This is compliant with Section 197 of the Companies Act, 2013, which governs executive compensation in such scenarios.
This move reflects foresight—Ather is acknowledging that profitability may not always be consistent during its growth phase, and that leadership should still be fairly rewarded, without relying solely on short-term numbers.
IPO in the Fast Lane
The pay revision comes as Ather gears up to file its Draft Red Herring Prospectus (DRHP) for an upcoming initial public offering (IPO), expected to raise around ₹2,626 crore through a fresh issue. The IPO will also include an offer-for-sale (OFS) from existing investors.
Notably, Ather is backed by a powerful lineup of stakeholders including:
- Tiger Global
- Hero MotoCorp
- Flipkart co-founder Sachin Bansal
Their participation in the OFS suggests a chance for partial exits and rebalancing portfolios—standard fare in startup IPOs.
Playing It Cool Compared to Ola Electric
Ather’s approach offers a study in contrast to rival Ola Electric and its founder Bhavish Aggarwal. In FY24, Aggarwal drew a total compensation of ₹2.88 crore, a steep jump from the symbolic ₹1 salary in FY23. What’s more, Ola Electric’s board has approved a structure that allows Aggarwal to earn up to ₹9 crore annually over the next five years.
The comparison is hard to miss. While Ola Electric leans into bold, headline-grabbing numbers, Ather’s pay structure signals a more cautious, governance-driven path—something public market investors often appreciate.
The Bigger Picture: Investor Confidence & IPO Optics
By keeping compensation conservative and tying variable components to performance, Ather appears to be sending a clear message: the company is IPO-ready—not just operationally, but culturally. As it seeks public trust and retail investor money, such optics matter.
In an era where founder pay is increasingly scrutinized, Ather’s structure avoids unnecessary controversy. It aligns with shareholder interests while also protecting its core leadership team.
Credits: Hindustan Times
Conclusion: Ather’s Calculated Ascent in the EV IPO Race
As Ather Energy stands on the brink of one of its most pivotal milestones—the launch of its IPO—it’s becoming increasingly clear that the company is prioritizing clarity, consistency, and credibility over flash and flair. The revised compensation structure for founders Tarun Mehta and Swapnil Jain is more than a matter of pay—it’s a signal to the markets, investors, and the broader public about how Ather intends to scale: with discipline and intent.
By keeping founder remuneration under control, even when the company has the legal leeway to go higher, Ather is consciously aligning itself with the values of governance maturity, a trait that can go a long way in winning institutional investor trust. The contingency clause for higher pay in loss-making years doesn’t dilute this maturity—it simply reflects pragmatism in a capital-intensive, still-maturing industry like EV manufacturing.
