The effect of the recession! Tata Group slashes salaries of top executives by 20 per cent

New Delhi, Monday 25 May 2020

For the first time in the history of the Tata Group, about 20 per cent of the salaries of the Tata Sons chairman and all CEOs of subsidiaries will be deducted. The company has taken these steps to compensate for the damage caused by the Corona virus epidemic.

Tata Consultancy Services (TCS) has been the first to cut the salary of CEO Rajesh Gopinathan, sitting on the group's most important post and giving the company the most benefits.

Which has also been announced. India Hotels had earlier said that the senior leadership would give a portion of its salary to the company this quarter to offset the losses.

The cuts will also be made on the salaries of CEOs and MDs of Tata Steel, Tata Motors, Tata Power, Trent, Tata International, Tata Capital and Voltas. An official familiar with the company's move said there would also be a reduction in bonuses for the current financial year.

A nationwide lockdown was declared due to the Corona epidemic. Many large industrial units were also closed for a long time.

As a result, it is the turn of all companies, big and small, to suffer such losses. In this situation, Tata has decided to cut its top executives and their large salaries.

A top CEO of the Tata Group said on condition of anonymity that this had never happened before in the history of the Tata Group. But currently some strict measures have been taken to ensure leadership and position to save the trade.

He further said that the Tata Group has been making every effort to ensure that the interests of the employees are not compromised. And his interests are protected.