As the coronavirus pandemic affects business revenues and future plans due to uncertainty of the economic environment, organizations have started to give their employees salary cuts to conserve cash during the crisis. Joining the likes of many other companies, Tata Sons have also decided to move ahead with salary cuts for its top brass.
For the first time in the history of the Tata Group, its Chairman Natarajan Chandrasekaran and Chief Executive Officers of all operating companies will take about 20% pay cut as the company initiates cost-cutting measures.
Although the cuts will majorly be from the executives’ current year bonuses, CEOs and MDs of Tata Steel, Tata Motors, Tata Power, Trent, Tata International, Tata Capital, and Voltas, among others, will have their compensation reduced.
The company says that the move is aimed at leading by example, motivating employees and organizations, and ensuring business viability.
TCS was the first to announce a cut in compensation for its CEO Rajesh Gopinathan followed by Indian Hotels Company. TCS is reportedly the group’s most profitable company.
The recent move comes as Tata Sons chairman N Chandrasekaran had earlier stated that each company will review its HR policy, revenue planning, and cash flow management. The tough measures are intended to protect business and lead with empathy as the business gets impacted due to COVID-19.
