Owing to the economic crisis due to the Coronavirus, for the first time in the history of the company, Tata Sons Chairman and the Chief Executive Officer’s (CEO’s) of all the Tata companies will take an approximate pay cut of 20%.
The reduction would mainly be in this year’s bonuses
The inside reports have revealed that this pay cut will mainly be from this year’s bonuses. Also, it is said that this move has been finalized to allow the management to lead by example, and also boost the morale of the employees during the crisis.
One of the CEO’s said: “These are times never before experienced in the history of our group and it calls for some tough measures to protect businesses. We will do all that it takes to ensure the right leadership with empathy. As a culture, the group has always ensured employees down the line are protected as much as can be.”
A change in HR Policy is likely to be implemented
In a separate statement, Tata Sons Chairman N Chandrashekaran had said that each company in the conglomerate will assess its human resource policy, revenue planning, and cash flow management to deal with the crisis.
Mr. Chandrashekaran had received a total pay package of Rs 65.52 crore for FY19, which had also included a Rs 54 crore commission on the profit of Tata Sons.
CEOs and MDs of several companies such as Tata Steel, Tata Power, Tata Motors, Tata Capital, Tata International, and Voltas, among others, will have their salary slashed in the coming days. India Hotels has already announced that its top management will take a pay cut to help the company survive the economy.
Source: Times Now News