N Chandrasekaran, chairman, Tata Sons, as well as the CEOs of the Tata Group’s companies will be taking a 20 per cent pay cut as a cost-cutting measure. The move is aimed at helping sail through the economic impact of the COVID-19 crisis. Such a cut is happening for the first time ever in the history of the Group.
By giving up part of their salaries, the leaders are trying to set an example. Also, the move is expected to give a boost to the morale of the employees during these difficult times.
It is reported that the top executives and directors of Tata Motors, Tata Capital, Tata Steel, Tata Power, Tata International, and other companies will be getting deducted salaries. These deductions are expected to be made from the bonuses for the year.
According to the annual report, the salary of Rajesh Gopinathan, CEO, Tata Consultancy Services (TCS), has already been deducted by more than 16 per cent, to Rs 13.3 crore in 2019-20, as compared to the previous financial year.
The top management of Indian Hotels also plans to give up a percentage of their salaries for this quarter, to contribute towards the recovery of the business.
The decision is in line with the Tata Group’s concern for its employees and their attempt to protect their workforce at any cost. The move is expected to convey empathetic leadership.