Tata Trusts to Reorganise Roles to Narrow Down Staffing Cost

Tata Trusts, under the chairmanship of Noel Naval Tata is going through a major internal restructuring of roles, including doing away with positions of chief financial officer (CFO) and chief operating officer (COO). The Trust, under its new leadership, is also decreasing dependence on external consultants. The move is being undertaken to reduce operational and management costs and to use the resources in carrying out its core philanthropic responsibilities, the Economic Times reported, citing sources. 

“A trust is supposed to operate like a servant of the public... The charity is for the public at large and not for its own staff. We don’t need ceremonial posts at high costs and, hence, proper checks and controls are being put in place,” said a source in the Economic Times report. 

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Currently, the changes that are taking place were reportedly initiated prior to the appointment of the 66-year-old head.An executive committee was set up under the late Ratan Tata to ensure that the trust is managed collectively. Currently, it comprises of four trustees; Noel Tata, Mehli Mistry, Venu Srinivasan and Vijay Singh. 

A prior internal audit by trustees revealed an increase in staffing costs of around Rs 180 crore and an additional cost due to implementation of various projects had further swelled the workforce cost to Rs 400 crore in the years before 2022. 

After the restructuring, the Trusts will prioritise on development projects and fulfilling their philanthropic obligations. Trust requires financial experts and internal talent to ensure that projects will be carried out smoothly and hence, reducing external consultants won’t hamper the functioning. 

Noel Tata has shown his interest in working towards the core functions of the Trust and the current changes are aligned to ensure that. 

“I look forward to carrying on the legacy of Mr. Ratan N. Tata and the Founders of the Tata Group. Founded more than a century ago, the Tata Trusts are a unique vehicle for undertaking social good. On this solemn occasion, we rededicate ourselves to carrying on our developmental and philanthropic initiatives and continuing to play our part in nation-building,” said Noel Tata in his first statement as chairman.