Senior executives in several Tata Group companies are bracing themselves for a 10-15% salary cut according to an Indian newspaper report.
The Economic Times said the wage cuts were part of a bid to reduce wage bill and stave off job cuts at middle and junior levels.
Tata execs told the ET that this is the first time that the group is planning salary cuts at the senior level. The extent of salary cuts will depend on how severely individual group companies are affected by the downturn.
“We will take a salary cut at the top-management level. This will allow us avoid putting many jobs at the mid and lower levels, across our facilities, at risk. However, a final call on this and the extent to which pay cuts will be effective, is yet to be taken,” a top executive at Tata Steel told ET.
Says Tata Motors MD Ravi Kant: “We are considering cuts in compensation of executives. But, the board is yet to take decision. Work on these lines are already underway.”