Tata Sons chairman Chandrasekaran’s FY24 pay jumped 20% to Rs135.3cr

MUMBAI: Tata Sons executive chairman N Chandrasekaran saw his remuneration increase by 19.8 per cent to Rs135.3 crore in the financial year ending March 2024, primarily due to a rise in commission on the company’s profits, according to Tata Sons’ annual report.

Of his total earnings, Rs121.5 crore came from profit commissions, with the remainder being salary and perks.

The overall remuneration for all Tata Sons directors also saw a 16 per cent rise, reaching Rs200 crore compared to Rs172.5 crore in FY23.

Salaries and compensation

Meanwhile, the salaries and compensation for Tata Sons employees increased by 2.5 per cent, totaling Rs441 crore for the year.

Interestingly, executive compensation across India’s top listed companies slowed in FY24 after two years of robust growth. Key managerial personnel of BSE 200 companies received a 3.9 per cent increase in total remuneration, which grew to Rs8,304 crore, marking the slowest growth in executive pay in four years.

Revenue growth

For FY 2023-24, Tata Sons reported a 25 Per cent increase in total revenue, reaching Rs43,893 crore. The company’s profit before exceptional items and taxes was Rs41,116.51 crore.

It recorded exceptional items of Rs1,303.35 crore, largely due to provisions for gross liabilities of Tata Teleservices and Tata Teleservices (Maharashtra) towards adjusted gross revenue (AGR) dues payable to the Department of Telecommunications.

Despite these provisions, Tata Sons posted a 57 per cent rise in profit after tax, amounting to Rs34,653.98 crore, contributing to significant salary hikes for its top executives.

Capital structure

The company’s capital structure strengthened over the year, with net worth increasing by 38 per cent to Rs1,24,878.55 crore. Its net debt fell to a negative Rs2,679.19 crore as of March 31, 2024, thanks to a cash surplus exceeding its total debt.

Tata Sons, which is registered with the Reserve Bank of India (RBI) as a core investment company (CIC), has applied to voluntarily surrender its CIC registration, seeking to operate as an unregistered CIC.

Mandatory listing

This comes after the RBI classified the company as an NBFC-upper layer last year, which would have required Tata Sons to list its shares. However, after repaying its debt of Rs21,813 crore during the year, the company sought exemption from the mandatory listing requirement.

Dividend, brand fee

The company also declared a dividend of Rs1,414 crore to its shareholders. Tata Trusts holds a 66 per cent stake in Tata Sons, while the Mistry family owns 18.4 per cent. The remaining shares are owned by Tata Group companies.

Additionally, Tata Sons raised its brand fees from group companies, generating Rs1,830 crore in brand and subscription income in FY24, up from Rs1,007.96 crore in FY23.