Mumbai, Aug 13 (NVI) Accepting the decision of N Chandrasekaran not to seek another term as Chairman of Tata Sons, the company’s majority stakeholder Tata Trusts has initiated the process of selecting his successor.
Chandrasekaran’s current tenure ends on February 20, next year and he announced yesterday that he will leave after that.
Tata Trusts holds a 65.9 per cent stake in Tata Sons, making the Trusts a key shareholder in the holding company.
Chandrasekaran’s decision came against the backdrop of differences within the company.
In a statement issued today, the Sir Dorabji Tata Trust (SDTT) said its nominee directors had received an email from Chandrasekaran on 12 August informing them that he would not offer himself for reappointment.
The Trust also expressed its appreciation for his contribution and stewardship of Tata Sons and the Tata Group over the past decade.
The trustees of the Sir Dorabji Tata Trust have passed a resolution to constitute a selection committee under the Articles of Association of Tata Sons.
The committee will recommend a candidate for appointment as the company’s next chairman.
Tata Trusts said it would extend its full support to Tata Sons to ensure a smooth, timely and orderly leadership transition, consistent with the values and long-term interests of Tata Sons and the Tata Group.
“We thank him for his immense contribution during a period of significant change, growth and transformation across the Group,” the Trust said.
Chandrasekaran said he decided against seeking another term after his reappointment proposal did not receive unanimous support from the Tata Sons board.
In his resignation letter, he said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved to recommend a five-year extension, which was subsequently recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the board.
According to Chandrasekaran’s letter, the proposal was placed before the Tata Sons board on 24 February but was not carried through after one board member did not support it. He said that, in the absence of unanimous backing, he chose to defer the decision.
Chandrasekaran also said around six months had passed since the board meeting without a decision being reached. He added that appointing a leader beyond February 2027 was important to provide clarity to employees, investors, partners and other stakeholders. (NVI)
