Saturday, February 15, 2025

Tata Group top execs to take up to 20% salary cut

Tata Group top execs to take up to 20% salary cut in an effort to conserve cash

For the first time in the Tata Group’s history, Tata Sons chairman N Chandrasekaran and Tata Group companies’ chief executive officers (CEOs) will take around a 20 percent compensation-cut in an effort to reduce the cost to tide over the economic impact of the COVID-19 crisis.

Pay package of Tata Consultancy Services (TCS) CEO Rajesh Gopinathan has already been slashed by over 16 percent to Rs 13.3 crore in 2019-20 compared to the previous fiscal, as per the company’s annual report. Indian Hotels has said its top management team will give a percentage of their salary this quarter to help with the survival phase of the company.

CEOs and MDs of Tata Steel, Tata Motors, Tata Power, Trent, Tata International, Tata Capital, and Voltas, among others, will have their compensation reduced. Top officials close to the development to media that the cuts would primarily be in current year bonuses.

The main purpose behind taking pay-cut is to lead by example and boost the morale of employees in the time of the coronavirus-induced crisis.

Remuneration of CEOs at the top 15 Tata Group firms jumped about 11 percent in FY19 from FY18 on average in comparison to a 14 percent surge in FY18 over FY17. Apart from TCS, no other entity has published the FY20 annual report so far. However, the figures are not strictly equivalent as some chief executives joined during the financial year.

Chandrasekaran received a total pay package of Rs 65.52 crore for FY19, which includes a Rs 54 crore commission on the profit of Tata Sons. His remuneration package was 19 percent higher than in FY18.

Subscribe to our newsletter!

Editorial

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

Deloitte, PwC, EY, KPMG Outpace Global Growth for India Divisions

The Indian divisions of Deloitte, PwC, EY, and KPMG...

EPS-95 Higher Pension Update: Less Than 1% Cases Settled So Far

Supreme Court Ruling and EPFO’s Higher Pension Rollout The Employees’...

Must Read

HCLTech: Grab 500+ Career Opportunities, Walk-in Hiring Drive

India's third largest IT services company, HCLTech is hiring...

Lenovo India appoints ex-PepsiCo HR Director Bhavya Misra as CHRO

Lenovo India appoints ex-PepsiCo HR Director Bhavya Misra as...

Government Launches SHe-Box Portal; Digital Shield for Women

The Ministry of Women and Child Development, under the...

Staff cheated on professional tests in KPMG, firm hit with fine

US audit watchdogs inspected and caught hundreds of KPMG...

New Income Tax Bill Set for Cabinet Approval on Friday

Union Cabinet, chaired by Prime Minister Narendra Modi, is...

Cognizant started laying off bench employees

Cognizant started laying off bench employees, the number could...

Acko Life Appoints Sandip Goenka as Chief Executive Officer

Acko, a leading general insurance company in India, has...

Related Articles

SightsIn Plus
SightsIn Plushttps://sightsinplus.com/
SightsIn Plus is an India’s leading high-quality people-focused monthly HR Magazine and provides up-to-date HR News, Leadership Announcements, Best HR Practices and Insights by Global CHROs, CEOs, HR Advisors, Business Managers and HR Heads on topics of interest to HR professionals. To subscribe SightsIn Plus, HR Magazine please visit- https://sightsinplus.com/subscribe/