3 weeks ago
N Chandrasekaran Steps Down As Tata Sons Chairman, Record Payout
N Chandrasekaran was the boss of a very big group of companies in India, called the Tata Group.
This week, he told the board that he was stepping down as the Executive Chairman of Tata Sons, the group's main company.
His current job ends in February 2027, and he has decided not to ask for the job again after that.
He said one member of the company's board did not agree to give him another five years, so he chose to step aside.
In his last year, he was paid 158.6 crore rupees, the most he had ever earned in one year.
Most of that money came from commissions tied to company profits, not his regular salary.
Over the last five years, he has earned about 685 crore rupees in total.
During his time as chairman, the group bought Air India and moved into new areas like computer chips, electric cars, and batteries.
His salary made up almost 80 per cent of all the money paid to Tata Sons directors that year.
N Chandrasekaran stepped down as Executive Chairman of Tata Sons, informing the board on Wednesday, August 12, ahead of the company's annual general meeting.
He will not seek re-appointment when his current tenure ends in February 2027.
His FY26 remuneration of Rs 158.6 crore (Rs 158.66 crore per the annual report) was his highest annual compensation since Tata Sons began disclosing directors' pay in FY22.
The package comprised Rs 17.9 crore in salary and allowances and Rs 140.7 crore in profit-linked commission; his five-year cumulative earnings were about Rs 685 crore (Rs 671.4 crore per FY22-FY26 disclosures).
Chandrasekaran cited a lack of unanimous board support for a five-year extension after one board member opposed the proposal on February 24, 2026.
- Who
- N Chandrasekaran, Executive Chairman of Tata Sons, who informed the board he will not seek re-appointment when his tenure ends.
- What
- He stepped down from his position ahead of the annual general meeting, with his FY26 remuneration of Rs 158.6 crore revealed as his highest since pay disclosure began in FY22.
- Where
- Tata Sons, the holding company of the Tata Group in India.
- When
- Wednesday, August 12, ahead of the company's annual general meeting; his current tenure ends in February 2027.
- Why
- He said he would not seek an extension because the board did not unanimously support a further five-year term; one board member opposed the proposal on February 24, 2026.
Support for extension
Opposition to extension
Extending Chandrasekaran's term by five years
Support for extension
The Sir Dorabji Tata Trust and Sir Ratan Tata Trust unanimously recommended a five-year extension, and the recommendation was also noted by the Tata Sons Nomination and Remuneration Committee and the board.
Opposition to extension
One board member opposed the extension when the proposal was presented on February 24, 2026, preventing unanimous backing; the matter remained unresolved six months later.
Key facts
- Position
- Executive Chairman, Tata Sons
- Stepped down
- Wednesday, August 12, ahead of the annual general meeting
- Tenure ends
- February 2027
- FY26 remuneration
- Rs 158.6 crore (Rs 158.66 crore per annual report)
- Salary and commission
- Rs 17.9 crore salary/allowances; Rs 140.7 crore profit-linked commission
- Five-year cumulative earnings
- About Rs 685 crore (Rs 671.4 crore per FY22-FY26 disclosures)
- Share of directors' total FY26 pay
- Almost 80 per cent
- Second-highest paid executive
- CFO Saurabh Agrawal at Rs 34 crore











