Tata Sons Chairman N. Chandrasekaran Declines FY26 Pay Raise Amid Group Concerns

Mumbai: Tata Sons chairman N. Chandrasekaran has declined to take a pay increase for FY26 amid concerns within the Tata Group over capital allocation and the profitability of several new businesses, according to officials familiar with the matter.

During discussions at the Nomination and Remuneration Committee meeting held alongside last week's Tata Sons board meeting, Chandrasekaran is understood to have conveyed that he would forgo a salary hike this year.

Tata Sons did not comment.

Some group businesses have been affected by cyclical pressures, while uncertain geopolitical and economic conditions have posed challenges to businesses such as Air India. Tata Consultancy Services accounted for 43% of group net profit in FY25.

Tata Sons reported a 24% rise in FY25 revenue to ₹5.92 lakh crore, while net profit declined 17% year-on-year to ₹28,898 crore.

Chandrasekaran drew total remuneration of about ₹155.8 crore in FY25, up 15% from the previous year. The package was heavily performance-linked, with around ₹15.1 crore comprising salary and related benefits, while nearly ₹140.7 crore came through profit-linked commission.

While Tata Trusts chairman Noel Tata had earlier expressed reservations over the scale of capital committed to several new-age and emerging ventures, he has since acknowledged Tata Electronics as a strategic, nation-building business aligned with India's manufacturing ambitions and is understood to have appreciated the company's progress and growth trajectory.

Amid ongoing discussions among key stakeholders within the Tata Group, Chandrasekaran has focused on core business priorities, engaging with global partners and overseeing strategic initiatives as the conglomerate advances large investment-led projects.