Tata Group Effects Pay Cut In Top Management Of Its Companies!

As the country is strugling under the economic crisis, top executives of the famous Tata Group, would take salary cuts up to 20 percent. They are doing this to set an example for others working employees while motivating and ensuring business viability.

As per Economic Times report, the CEO's and MD's of the Tata Group companies including Tata Steel, Tata Motors, TCS, Tata Power, Trent, Tata International, Tata Capital and Voltas including Tata Sons are the executives who will face 20 percent cut in compensation.

The pay cut was first initiated by TCS after it announced a salary cut for CEO Rajesh Gopinathan. This pay cut has been implemented after the group decided and went ahead with the deduction. 

Meanwhile, a Tata Steel spokesperson told ET that the remuneration decisions are taken by the remuneration committee. They also stressed that it might not be right to pre-empt a way forward.

In its recent annual report, TCS has mentioned that the executive remuneration for FY20 is lower than FY19 due to the COVID-19 pandemic. Also, the salary of the CEOs in the top 15 Tata Group companies grew around 11 per cent from FY18 to FY19.