Tata Sons chairman N Chandrasekaran has declined a salary increase for FY26, a decision taken as the group weighs concerns over capital allocation and the profitability of several of its newer businesses.
The chairman conveyed his decision to forgo a hike at a Nomination and Remuneration Committee meeting held alongside the Tata Sons board meeting last week, according to a report by The Economic Times citing officials familiar with the matter. Tata Sons did not comment on the development.
The move stands out given the scale of his package. In FY25, Chandrasekaran drew total remuneration of about ₹155.8 crore, up 15% from the previous year, making him one of India’s highest-paid corporate leaders. His pay was heavily performance-linked. Salary and related benefits accounted for roughly ₹15.1 crore, while close to ₹140.7 crore came through profit-linked commission.
The timing matters. Tata Sons posted FY25 revenue of ₹5.92 lakh crore, a 24% jump, but net profit fell 17% to ₹28,898 crore. The group also remains heavily reliant on Tata Consultancy Services, which contributed 43% of net profit in the same year.
The remuneration discussions have unfolded against a backdrop of internal scrutiny over investment in emerging ventures. Tata Trusts chairman Noel Tata had earlier raised reservations about the scale of capital committed to several new-age businesses. He has since acknowledged Tata Electronics as a strategic, nation-building business aligned with India’s manufacturing ambitions.
Air India has been a particular focus. The airline reported a full-year loss of about ₹26,800 crore in FY26, its largest since the Tata Group’s 2022 acquisition, prompting Noel Tata to press for a turnaround plan. Chandrasekaran is understood to have presented a three-year roadmap that includes deferring aircraft deliveries, rationalising routes and recalibrating fleet expansion to better manage cash flows.
Chandrasekaran has led Tata Sons since 2017. His current term ends in February 2027, and discussions on extending his tenure have yet to progress at recent board meetings.
