Advertisement

First Time In 152 Years: Salary Cut For Tata Group Top Management

Coronavirus is triggering unprecedented changes in our economic sector as a result of which the Tata Sons chairman is going to administer a 20% cut, TCS CEO’s salary has already been reduced by 16%.

?

For the first time ever, N Chandrasekaran, chairman, Tata Sons, as well as the CEOs of the Tata group’s companies will take a salary cut- as they try to set an example for their employees. This move is also a stepping stone in their hopes of boosting the general morale of the workers during these challenging times. The salary cut will be rolled out for CEOs and MDs at Tata Steel, Tata Motors, Tata Power, Trent, Tata International, Tata Capital and Voltas and other holding companies.

These deductions are expected to be leveraged from their bonuses for the year. As per the indications of the annual report; Tata Consultancy Services (TCS)’s chief Rajesh Gopinathan’s salary has already dropped to Rs 13.3 crore, which is a reduction of 16.5%, as on the year ending March 31, 2020. Commenting on the on-going implications of the global pandemic, Covid-19, TCS in their annual report said, “The executive remuneration for FY20 is lower than FY19 in view of the economic conditions impacted by the Covid-19 pandemic.”

It is also expected that the top layer of reputed Indian Hotel management is planning to give up a percentage of their salaries for this quarter so as to reimburse the damages towards the business and contribute to its recovery.

Separately, on another account to a business daily, Chandrasekaran had earlier mentioned that each company will assess its human resource policy, revenue planning, and cash flow management.


Tags assigned to this article:
COVID-19 Salary Cut Tata Group Top Management lockdown

Advertisement

Around The World