After sacking Cyrus Mistry as chairman, Tata Sons board appointed Ralf Speth, CEO of Jaguar Land Rover, and N Chandrasekaran, CEO & managing director of Tata Consultancy Services (TCS), as additional directors on the board.
With this, the Tata Sons board strength has increased to 12, including Ratan Tata and Cyrus Mistry. Corporate watchers said the move is aimed at strengthening the board against any possible legal or corporate onslaught by the Pallonji Mistry group.
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The Shapoorji Pallonji Group holds nearly 18 per cent stake in Tata Sons.
Commenting on their appointment, Ratan N Tata, interim chairman of Tata Sons, said: “This is in recognition of their exemplary leadership in their companies.” Chandrasekaran is the CEO of Tata Consultancy Services, the cash cow of the group with a market capitalisation of Rs 472,636 crore. He is also considered to be a contender, among nearly a dozen others, for the Tata Sons chairman’s chair. Speth is credited with having turned around Jaguar Land Rover at a time when global automobile industry is facing tough times.
On Monday, 2 out of 8 directors had abstained from voting on the resolution for the removal of Cyrus Mistry as the Chairman.
The present board of Tata Sons includes Ratan Tata himself, along with Cyrus Mistry, Venu Srinivasan, Ronen Sen, Nitin Nohria, Farida Khambhata, and Ajay Piramal, among others. ENS