Tata Sons chairman N Chandrasekaran has declined to take a salary increase for FY26, amid concerns within the Tata Group over capital allocation and the financial performance of several new businesses, according to a report by the Economic Times.
At a Nomination and Remuneration Committee meeting held alongside last week's Tata Sons board meeting, Chandrasekaran reportedly conveyed that he would forgo a pay hike this year. In FY25, he drew total remuneration of about ₹155.8 crore, up 15% from the previous year. Of this, ₹15.1 crore comprised salary and related benefits, while ₹140.7 crore came through profit-linked commission.
Board Approves Accounts, Skips Key Decisions
This comes at a time when discussions on Chandrasekaran's third term hangs in limbo, with the board yet to progress on extending his tenure. Notably, Tata Sons board met on June 12 at Bombay House in Mumbai for nearly four hours. All six board members attended, including Tata Trusts chairman Noel Tata and industrialist Venu Srinivasan. The board approved the company's annual accounts and dividend for FY26, but discussions on a possible listing of Tata Sons and on Chandrasekaran's future tenure did not come up, according to reports.
1 June 2026
Get the latest issue of Outlook Business
Chandrasekaran has led Tata Sons since 2017. His current term ends in February 2027, and he is widely expected to be considered for another term. Reports indicate that discussions on extending his tenure also did not progress at an earlier board meeting held on February 24.
A central concern at the board meetings has been the mounting losses at Air India. The airline posted a full-year loss of $2.8 billion, or roughly ₹26,800 crore, in FY26, according to Singapore Airlines Group, which holds a 25.1% stake in the carrier. This marked Air India's largest annual loss since the Tata Group's acquisition in 2022.
At the board meetings, Noel Tata had raised questions about the airline's capital consumption, pressing Chandrasekaran to present plans for a turnaround and loss reduction, according to reports. In response, Chandrasekaran reportedly introduced a three-year plan, under which Air India is deferring aircraft deliveries, cutting routes and adjusting its fleet expansion strategy to manage cash flows.
While Noel Tata had earlier expressed reservations over capital committed to new-age ventures more broadly, he has since acknowledged Tata Electronics as a strategic priority aligned with India's manufacturing ambitions and is understood to have appreciated the company's progress, as per the ET report.
