Tata Group top management to take up to 20% salary cut for the first time due to COVID-19

Tata Sons chairman N Chandrasekaran and Tata group companies’ chief executive officers (CEOs), for the first time in the conglomerate’s history, will take around a 20 per cent compensation-cut in an effort to reduce the cost to tide over the economic impact of the coronavirus crisis. Remuneration package of Tata Consultancy Services (TCS) CEO Rajesh Gopinathan has already been slashed by over 16 per cent 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.

Company insiders are of the view that CEOs and MDs of several companies such as Tata Steel, Tata Power, Tata Motors, Tata Capital, Tata International, and Voltas, among others, will have their salary slashed. Senior officials aware of the matter said that the reduction would mainly be in current year bonuses. Separately, Chandrasekaran had earlier mentioned that each company will assess its human resource policy, revenue planning and cash flow management. 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 per cent higher than in FY18, the report mentioned.