What Tata Boss Chandra Earns

Rs 135.3 crore.
How much of it was salary, and how much commission?

The remuneration of Tata Sons Executive Chairman N Chandrasekaran went up 19.8 per cent to Rs 135.3 crore (Rs 1.353 billion) in 2023-2024 owing to a rise in commission on the profit of the unlisted, holding company of the group, according to its Annual Report.

The report said Chandrasekaran earned commission worth Rs 121.5 crore (Rs 1.215 billion) while the rest was his salary and perquisites.

The remuneration of all Tata Sons directors rose 16 per cent with the company paying Rs 200 crore (Rs 2 billion) to the top ones as compared to Rs 172.5 crore (Rs 1.725 billion) in 2022-2023.

The salary and remuneration of Tata Sons employees were up 2.5 per cent to Rs 441 crore (Rs 4.41 billion) in the same period.

Executive compensation in India's top listed companies slowed in FY24 after two years of strong growth.

The combined remuneration of key managerial persons, or the top management of BSE 200 companies, was up 3.9 per cent year-on-year in FY24 to Rs 8,304 crore (Rs 83.04 billion) from Rs 7,990 crore (Rs 79.90 billion) a year earlier.

This was the slowest growth in executive compensation in the last four years, according to the data compiled by the Business Standard Research Bureau.

In FY24, Tata Sons reported a growth rate of 25 per cent in revenue to Rs 43,893 crore (Rs 438.93 billion) and reported a profit before exceptional items and taxes of Rs 41,116.51 crore (Rs 411.16 billion).

The company reported exceptional items of Rs 1,303.35 crore (Rs 13.03 billion) in 2023-2024 mainly due to provisions made for the gross liabilities of Tata Teleservices and its subsidiary, Tata Teleservices (Maharashtra), as adjusted gross revenues paid to the government.

The holding firm reported profit after tax of Rs 34,653.98 crore (Rs 346.53 billion), a growth rate of 57 per cent over the previous year.

The capital structure of the company strengthened as its net worth increased by 38 per cent to about Rs 1.25 trillion while its cash balance was more than its debt on March 31, 2024.

The company, registered as a Core Investment Company (CIC) with the Reserve Bank of India, has applied to the central bank for voluntarily surrendering its registration as a CIC and operating as an unregistered CIC.

Last year, the RBI had classified Tata Sons as a non-banking financial company (upper layer), thus making it mandatory for the firm to list its shares.

With the company paying its debt of Rs 21,813 crore (Rs 218.13 billion) during the year, it sought an exemption from listing from the RBI.

The company paid a dividend of Rs 1,414 crore (Rs 14.14 billion) to its shareholders. Tata Trusts owns 66 per cent in the company, while the Mistry family has 18.4 per cent. The rest is owned by Tata group companies.

The company raised its brand fees from group companies in 2023-2024 and earned brand and subscription income of Rs 1,830 crore (Rs 18.30 billion) in 2023-2024 as compared to Rs 1,007.96 crore (Rs 10.07 billion) earned in 2022-2023.

Feature Presentation: Ashish Narsale/Rediff.com