Published 14:05 IST, May 25th 2020
In a first, Tata Group's top brass to take 20% pay cut amid COVID-19 cost-cutting
The chairman of Tata Sons and CEOs of operating companies will take an estimated 20 percent reduction in their compensation as a part of cost-cutting measures
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For the first time in the storied history of Tata Group, the chairman of Tata Sons and CEOs of all operating companies will take an estimated 20 percent reduction in their compensation as a part of cost-cutting measures to combat COVID-19 crisis. The move is aimed at motivating employees, organizations and ensuring business viability, as per reports.
Tata Consultancy Services (TCS), the group’s flagship and its most profitable company, was the first to announce a cut for its CEO Rajesh Gopinathan. Indian Hotels had also announced that its senior leadership will “contribute a percentage of their salary in 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 face reduction in their compensation. Top officials have said that the cut would primarily be in current year bonuses.
Measures in view of the pandemic
The remuneration of CEOs at the top 15 Tata Group companies rose about 11 percent in FY19, compared with a 14 percent rise in FY18.
On the business front, the sales of 33 listed Tata Group companies rose 10 percent to Rs 7.52 lakh crore in FY19. Three companies - Tata Motors, Tata Steel, and TCS, contributed nearly 82 percent of total sales. However, the profits of the 33 other companies declined 20 percent in FY19 from FY18.
Chairman, Mr. Ratan N Tata’s statement on Tata Trusts COVID 19 strategy. pic.twitter.com/ponrszzXtW
— Tata Trusts (@tatatrusts) March 28, 2020
Tata Trusts airlifting critical gear for India’s Covid-19 response.#TataInternational @airindiain @TataCompanies pic.twitter.com/1wa1pTBHmo
— Tata Trusts (@tatatrusts) April 16, 2020
14:05 IST, May 25th 2020