Tata Sons board okays pay hike of executives | Economic Times

The board of Tata Sons has approved hikes in the compensation packages of executives of the holding company and is understood to have approved some significant initiatives of Tata Digital including integration of some group digital businesses, the recent Big Basket acquisition and proposed technology tie-ups. The board has also been apprised of possible funding requirements for the growth initiatives in the digital, medical, electronics and technology sector, it is learnt.Officials said the board was also apprised of the proposed acquisition of 1 mg, an online medical store, officials said. "It was a regular board meeting and plans for 2021 in terms of execution were largely discussed" an official said, requesting anonymity.At the board meeting held on Tuesday, performance of group companies amid the ongoing Covid 19 pandemic and the holding company's annual budget plans were also finalised, officials close to the development said. 82954450Senior executives at Tata Sons and many group companies took an estimated 20% pay cut in 2020. Though group revenues have risen just 2.56% in FY21, the rise in net profit was better than expected at 14.55% at ₹32,783 crore. "Rest of the group companies have already announced an upward revision of compensation packages and that of the holding company was approved keeping in view the performance and efforts" an official said.Officials said except for hotels and airlines, most businesses have been on a good wicket even in a challenging business scenario.Tata Sons is keen to scale up Tata Digital and get its SuperApp plans finalised. The latter has been considerably delayed as the group tries to tie up several loose ends, officials close to the development said. The Tata group and Big Basket have formally finalised a $1.2 billion deal giving India's largest conglomerate a 60-63% stake in the e-grocer. Other consumer-facing units such as the ecommerce site, Tata Cliq, another app that provides medical services, Tata Class edge, which provides educational services and a ready-to-eat business, app, Tata Q are being integrated into Tata Digital.The group is expected to invest over ₹2,000 crore in these initiatives. Tata Trusts chairman Ratan Tata and Tata Sons chairman N Chandrasekaran are said to have stressed that the group will not hold back on investments.