572572020, Covid impact Tata's top deck to take up to 20% pay cut forthe fst time in groups history - The Economie Times Tur EcoxomicTives ents > NSE GarerLarge op > NSE LoerLarge o> FeaTuneo nos SysEWRN tA, ata ‘Sensex ciose> Coromandel int. _? sBicards {cicl Prudential Bucehip "4.07% ‘Peds Bonds 8 More masrase 20031 95088, 3559 “0958 92.00 une Brea Sew mies no Covid impact: Tata's top deck to take up to 20% pay cut for the first time in group's history way 252000180 AIST ‘Mumbai: For the first time in the Tata Group's history the chairman of Tata Sons and CEOs ofall operating companies will take an estimated 20% cut in compensation as the conglomerate initates cost-cutting measures. The move is aimed at leading by example, ‘motivating employees and organisations and ensuring business viabilty insiders sai. TCS, the group's flagship and its most profitable company, was the frst to announce a cut for CEO Rajesh Gopinathan, Indian Hotels has already said its senior leadership will “contnbute 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 Intemational, Tata Capital and Voltas, among others, wil have their compensation reduced, executives said Top officials close to the development said the cut would primarily be in current year bonuses. “These are times never before experienced in the history of our group and it calls for some Big Change: tough measures to protect businesses," said a top group CEO seeking anonymity, ‘We wil T* eet Five-Year Hans Allyou reas fo know do all that takes to ensure right leadership with empathy. As a culture, the group has always ensured employees down the line are protected as much as can be" Cutting COStS — eniceration xeng| RAISES toe sons cnarman v cnancrasekaran had told (@Crore) Over Remuneration ET earlier that each company will view its HR Company MD&CEO. FYI9—FY18|—-FY19(X)_polcy, revenue planning and cash flow Tata Sons N Chandrasekaran # 65.52 19 | a ‘management. fis Mots ae ee a Measures in View of Covid Pandemic TCs * Rajesh Gopinathan _13.38_-17 | _215__| swe wiibe compassionate and each company Tata Stee! TV Narendran 11.23 19 | 112 will take a decision individually to ensure a viable Titan Bhaskar Bhat 693_ 15 99 _business” Chandrasekaran had iad ET. Indian Hotels Puneet Chhatwal_ TS SSG25S _—|_$40 | ie san and most roup compass didnt Voltas Pradeep Bakshi 451 — 64 respond to ET's email on the subject. A Tata Stee! ‘#Chairman “For FY20 ‘Source: Balance sheets spokesperson said, "Remuneration is a decision Which rests withthe remuneration committes of the board of Tata Steel. It therefore may nat be appropriate to pre-empt a way forward in the matter.” (CEO remuneration atthe top 15 Tata Group companies rase about 11% in FY19 from FY18 on average compared with a 14% jump in FY18 over FY17. Barring TCS, no other unit has published the FY20 annual report so far. However, the data is nat strictly comparable 1S some CEOs joined during the financial year itps:economictmas indiatimes. comMnewsicompanyicorporate-trends/covid-pacti-a-rstata-groupsop-deckto-lake-up-o-20-pay-cufprintaricln.. 1/2572572020, Covid impact Tata's top deck to take up to 20% pay cut forthe fst time in groups history - The Economie Times Chandrasekaran received a total remuneration of Rs 85.52 crore for FY19, which includes a Rs $4 crore commission on the profit of Tata Sons. His package was 19% higher than in FY18, On the business front, Tata Group sales of 33 listed companies rose 10% to Rs7.52 lakh crore in FY19. Three companies — Tata Motors, Tata Stee! and TCS — contributed nearly 82% of total sales, However, profs of the 33 companies declined 20% in FY19 from FY18. TCS contributed nearly Rs32,340 crore to Tata Group prof, followed by Tata Stee! at Rs 10,218 crore in FY19, TCS chief executive Rajesh Gopinathan’s remuneration dropped 16.5% to Rs 1.3 crore inthe fiscal year ended March 31from Rs 16.04 crore in the previous financial yea. “The executive remuneration for FY20 slower than FY19 in view of the economic condliions impacted by the Covid-19 pandemic,” sald the TCS annual report. He earned 215 times the median remuneration. Tata Motors CEO Guenter Butschek was paid Rs26.29 crore, the ‘most among group CEOs and 351 times the median remuneration The company made a loss of Rs28,828 crore in FY19. Tata Steel, which reported a 16% compounded sales growth over three years and 88% profit growth during the period, raised CEO TV Narendran’s salary by 19% to Rs11.23 crore in FY19. Titan and Tata Ebsi, the two best companies as far as growth was concerned, raised CEO remuneration by 15% each in FY19. The CEO pay package at Trent, Tata Chemicals, Relis India and Tata Coffee rose about 10% in FY19, (This story hes not been ected by economictimes. com and is auto-generated from @ syndicated feed we subsnbe to) ‘Stay ontop of business news with The Economic Times App. Download it Now! itps:economictmas indiatimes. comInewsicompanyicorporate-trends/covid-pacti-a-rtata-groupsop-deckto-lake-up-o-20-pay-cufprintaricln.. 2/2