Top executives at the 22 lakh crore Tata Group earned pay raises ranging from 16% to 60% this year, with high-growth sectors such as Indian Hotels (IHCL), Tata Power, Trent, and Tata Consumer heading the list of generous paymasters at the country’s most-valued and diverse conglomerate.

Tata Sons’ board also highlighted the group’s most significant increase in history, to $97 billion in sales income in 2022-23, as most significant organisations expanded 20%, according to authorities.

Salary, perquisites, commission, and other perks are included in the entire package. According to statistics released by a few group firms in their annual reports, the increase for certain executives is in the region of 20%-50%.

CEOs of high-growth firms are being rewarded and urged to continue focusing on capitalising on opportunities and boosting the rate of growth,” company’s CEO stated. There is a strong emphasis on productivity and performance throughout management levels and organisations, which has contributed to group-level growth. The enthusiasm is palpable, and the focus for established businesses is now on scaling up and growing. Companies are in diverse phases of development and expansion, making them incomparable.

Tata Sons’ board of directors met at the end of May. Its management claimed that older functioning firms have excellent cash flows to meet their demands, and that the majority of future substantial investments will be made in Tata Digital and Air India.

The company today comprises 30 firms spread over 10 industry clusters that are technology, steel, automotive, consumer and retail, infrastructure, financial services, aerospace and defence, tourism and travel, telecom and media, and trade and investments. Indian Hotels made a net profit of 1,003 crore in FY23, compared to a loss of 248 crore in FY22. 

The revenue increased by 90% to ₹5,810 crore. Trent reported a 10-fold increase in net profit to ₹394 crore and an 80% increase in sales to ₹8,242 crore.On March 31, 2023, the group’s 28 listed firms had roughly ₹88,000 crore in cash and cash equivalents. Puneet Chhatwal, CEO of Indian Hotels, received a 37% rise to ₹18.23 crore this year, while Trent CEO P Venkatesalu received a 62% rise to ₹5.12 crore.

R Mukundan, CEO of Tata Chemicals, received a 16% rise to ₹8 crore, and Praveer Sinha, CEO of Tata Power, received a 16% rise to ₹9 crore. Sunil D’Souza, CEO of Tata Consumer, received a 24% rise to ₹9.5 crore. Pradeep Bakshi, CEO of Voltas, received a 22% rise to ₹3.8 crore. Rajesh Gopinathan, TCS’s now-former CEO, received a 13% rise to ₹29.1 crore.

Tata Sons did not respond. While requesting anonymity, a group official stated that FY23 was one of the finest years in terms of group performance, both pre- and post-Covid. After taking a 20% wage reduction to keep expenses down during the 2020 Covid-induced economic slowdown, the firm restored salaries in 2021. In the previous two years, 22 of Tata Group’s 28 listed equities have outperformed the market. In two years, the group’s market value has increased by about 3 lakh crore.

Many group companies delivered remarkable results in FY23, with 17 of the 28 listed enterprises reporting year-on-year revenue increase ranging from 11% to 90%.

Conclusion.

High-growth companies, including Indian Hotels, Tata Power, Trent, and Tata Consumer, granted CEOs and senior executives compensation raises ranging from 16% to 60%. Tata Sons’ board of directors welcomed the company’s biggest growth in history, to $97 billion in sales revenue in 2022-23. The conglomerate has 30 enterprises spread over ten business clusters and now invests mostly in Tata Digital and Air India.

CEOs of businesses with high growth rates have been recognised with awards in order to encourage them to work hard, consistently direct their efforts in the correct directions, generate the greatest chances for their businesses, and accelerate their rate of expansion.

Proofread & Published By Naveenika Chauhan