Tata Sons chairman Chandrasekaran clarifies no leadership structural changes on anvil
Tata Sons Ltd's chairman Natarajan Chandrasekaran clarified that there was “no leadership structural changes are on the anvil, as speculated in certain sections of media," at $106-billion group.
On Tuesday, a report in Bloomberg citing sources, stated that Tata Sons is considering 'historic revamp of its leadership structure by creating a chief executive officer’s role to help improve corporate governance.'
N Chandrasekaran, whose current tenure as the chairman of the company comes to an in February 2022, refuted media reports and said, “Any such decisions if relevant, are taken by the Nomination and Remuneration Committee," in a statement issued.
Furthermore, Tata Trusts Chairman and Chairman Emeritus of Tata Sons Ratan Tata also expressed his displeasure over the news and said," Extremely disappointed over reports speculating major revamp in group's organisational framework."
He added that "such speculation can only serve to cause disruption amongst a team that has been operating smoothly with impressive growth in market value."
As per the report, in the plan being proposed, the CEO will guide the sprawling businesses of the 153-year-old Tata empire, while the chairman will oversee the chief executive on behalf of shareholders, the people said, asking not to be identified discussing private information. The approval of Ratan Tata -- the octogenarian chairman of controlling owner Tata Trusts -- is seen as key to implementing the change, it added.
“The current chairman of Tata Sons, Natarajan Chandrasekaran, is being considered for extension after his term ends in February, while heads of various Tata group firms, including Tata Steel Ltd., are being evaluated for the CEO position, the people said. No final decision has been reached, and the plan and details could still change, the people said," the report added.
The proposal comes months after Tata Sons’ former chairman Ratan Tata, 83, won a years-long legal battle with his successor Cyrus P. Mistry, who alleged mismanagement at the group and sued the patriarch for ousting him in 2016.
The proposed makeover may help chart a future for the conglomerate, which is at a crossroads after more than two decades of expansion under Ratan Tata’s leadership. There’s no clarity on who will succeed him as chairman of Tata Trusts, which owns 66% of the holding company that runs the empire whose roots date back to 1868, the Bloomberg reporter further stated.