Rs 140 crore in perks: Tata Sons Chairman N Chandrasekaran’s FY25 pay package totals over Rs 155 crore

By | July 28, 2025
N Chandrasekaran pay FY25 Tata Sons Chairman

Executive pay packages often attract attention due to their scale and performance benchmarks. Tata Sons Chairman Natarajan Chandrasekaran made headlines in FY25 with a total remuneration of ₹155 crore, which includes ₹140 crore in perks and commissions. This marks a 15% jump from his FY24 package, highlighting the group’s strong confidence in his leadership even though profits dipped.

Breakdown of the ₹155 Crore Pay Package

Chandrasekaran’s compensation consists of fixed salary and performance-linked commission. For FY25, his fixed salary and benefits stood at ₹15.1 crore. The bulk of his pay, nearly ₹140.7 crore, came as commission tied to Tata Sons’ profits.

Tata Sons recorded a 24% drop in net profit, falling from ₹34,654 crore in FY24 to ₹26,232 crore in FY25. Despite this decline, Chandrasekaran’s package grew. Analysts note that the commission reflects past achievements and long-term strategic wins. His leadership helped strengthen Tata’s position in digital, EVs, and semiconductors.

Why Chandrasekaran’s Leadership Earns a Premium

Since 2017, Chandrasekaran has guided the Tata Group through major challenges. He played a key role in restructuring Tata Steel Europe and reviving Air India. He pushed for digital transformation, sustainability, and expansion into high-growth industries like renewable energy.

Some notable initiatives under his leadership include:

  • Tata Neu, the group’s super app that connects customers with multiple Tata brands.
  • Aggressive investments in electric vehicles (EVs) through Tata Motors, making it the top EV manufacturer in India.
  • A strong focus on semiconductors and electronics, which are critical to India’s future growth.
  • Air India’s turnaround plan, which includes buying new aircraft and modernizing services.

These moves have strengthened Tata Group’s global presence and increased shareholder value. The board’s decision to raise his compensation reflects their trust in his strategy and execution.

Comparison with Other CEOs

Chandrasekaran ranks among India’s highest-paid executives. For comparison, HCL’s CEO C Vijayakumar earns about ₹100 crore, while Infosys CEO Salil Parekh takes home around ₹56 crore.

Tata Sons, however, is the holding company for over 100 businesses—from IT and steel to automobiles and hospitality. Leading such a massive and diverse portfolio requires exceptional skill.

Globally, Chandrasekaran’s pay still looks modest. CEOs of multinational giants like Apple’s Tim Cook or Alphabet’s Sundar Pichai often earn more than $100 million when stock options are factored in.

Public Debate on High Pay

The large pay package has triggered discussions about income inequality and CEO compensation. Critics argue that such pay growth contrasts with slower wage increases for employees and managers. Others say CEO compensation should reflect profits, which have fallen this year.

Supporters, on the other hand, emphasize that Chandrasekaran’s pay depends on performance-based commissions. They believe his vision and leadership have driven consistent growth in sectors like IT and automobiles, which justifies the reward.

Future Goals for Tata Sons

Chandrasekaran remains focused on expanding Tata’s global reach. He is driving investments in clean energy, semiconductors, and digital ecosystems. The Tata Semiconductor Manufacturing initiative is a step toward reducing India’s reliance on imports.

Air India’s revival is another big project. The group plans to modernize the airline and create a world-class aviation hub for India.

Conclusion

N Chandrasekaran’s ₹155 crore pay package in FY25 reflects both recognition of past achievements and confidence in his future leadership. While the scale of the remuneration invites debate, it highlights the value corporate India places on visionary leaders who can navigate complex markets.

As Tata Sons continues to invest in EVs, digital businesses, and renewable energy, Chandrasekaran’s role will remain vital. His pay, though large, mirrors the responsibilities of steering one of India’s most iconic conglomerates toward a modern, global future.