Tata Sons Chairman N Chandrasekaran has reportedly decided not to accept a salary increase for the financial year 2025-26, as the Tata Group remains focused on capital deployment priorities and improving the profitability of several recently established businesses.
Compensation Details
Chandrasekaran's total compensation for FY25 stood at approximately Rs 155.8 crore, marking a 15% rise over the previous fiscal year. The remuneration structure remained largely performance-driven, with about Rs 15.1 crore comprising salary and associated benefits, while nearly Rs 140.7 crore was earned through profit-linked commissions.
Group Challenges
Several group companies have been dealing with cyclical headwinds, while businesses such as Air India continue to navigate challenges arising from an uncertain geopolitical and economic environment.
Decision Process
Sources told ET that during discussions held at the Nomination and Remuneration Committee meeting, which took place alongside the Tata Sons board meeting last week, Chandrasekaran indicated that he did not wish to receive a pay hike for the current financial year.
Financial Performance
Tata Consultancy Services remained the group's largest profit contributor in FY25, accounting for 43% of overall net earnings. Tata Sons reported a revenue of Rs 5.92 lakh crore in FY25, an increase of 24% from the previous year. However, the group's net profit fell 17% year-on-year to Rs 28,898 crore.
Strategic Investments
Although Tata Trusts Chairman Noel Tata had earlier raised concerns about the extent of investments being channelled into several emerging and new-age businesses, he has subsequently recognised Tata Electronics as a strategically important venture that supports India's manufacturing aspirations. People familiar with the matter told the financial daily he has also acknowledged the company's growth momentum and progress.
Future Outlook
As deliberations continue among the group's key stakeholders, Chandrasekaran has remained focused on the conglomerate's principal business objectives, strengthening engagement with international partners, and guiding major strategic programmes as Tata Group moves ahead with a series of large-scale investment-led initiatives.
