Tata Sons has sought an independent opinion of an international executive search firm on the salary hike of its chairman, N Chandrasekaran, who will complete his first year in office next month, according to a report in Business Standard.
Chandrasekaran took over as the chairman of Tata Group on February 21 last year at a lower salary than what he was earning at India’s largest software exporter, TCS as its CEO and MD. A resolution letter issued by the company then had stated that the group chairman's annual increment would be decided at a later date by the board’s nomination and remumeration committee (NRC).
After the firm shares its opinion, the NRC will then recommend a hike for Chnadrsekaran. The performance of Chairman and Tata Sons over the past year will be taken into account for the salary hike.
Currently, Chandrasekaran’s annual salary is Rs 24 million, which can go up to Rs 48 million. The former TCS chairman is also eligible for a performance-linked remuneration up to 200 percent of basic salary.
Sources told the paper that the NRC would look at Chandra's efforts to bring back the glory days of Tata Group after a bitter fight between its patriarch Ratan Tata and his protégé-turned-foe Cyrus Mistry. The legal battle between Tata Sons and the Mistry family is still going on in the National Company Law Tribunal (NCLT), Mumbai bench.
In the past one year, Chandra took important decisions such as exiting from the loss-making telecom business and merging Tata Steel with ThyssenKrupp of Germany.
Chandrsekaran also evinced interest to take over Air India and stressed steel assets on sale by Indian lenders.
Tata Sons is making its way to raise Rs 50 billion from domestic markets, and another USD 1.5 billion as foreign loan. And Tata Motors is set to launch a series of models to garner market share.
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