Tata Group said to shortlist candidates for next chairman following ouster of Cyrus Mistry

Tata Group on Thursday said it ousted Cyrus Mistry because of a growing “trust deficit” with the biggest shareholders of the tea-to-software giant after the former head accused directors of India’s largest conglomerate of wrongfully dismissing him.

By: Bloomberg | Updated: October 28, 2016 4:06 pm
tata, cyrus mistry, tata group, tata sons, tata latest news, ratan tata, tata chairman, new tata chairman, chandrasekaran, TCS, cyrus mistry ouster N. Chandrasekaran CEO & MD of Tata Consultancy Services during a media briefing (Express Photo by Amit Chakravarty)

Tata Group is examining at least two internal candidates as India’s largest conglomerate seeks to find a successor to ousted Chairman Cyrus Mistry, according to people familiar with the matter.

Tata Consultancy Services Ltd. Chief Executive Officer N. Chandrasekaran and Jaguar Land Rover head Ralf Speth are among those being considered, the people said, asking not to be identified because the process is private. Trent Ltd. Chairman Noel Tata, a member of the founding family and Mistry’s brother in law, is also being considered, one of the people said. The preliminary list is subject to change, according to the people, as the search committee has four months to identify a replacement.

WATCH VIDEO: Following Cyrus Mistry’s Ouster, Tata Group To Shortlist Candidates For Next Chairman

 

Chandrasekaran and Speth didn’t immediately respond to requests for comment. Tata Sons Ltd., the group’s holding company, declined to comment. Noel Tata wasn’t immediately reachable.

On Monday, the group’s holding company abruptly ousted Mistry, 48, as chairman and replaced him with his 78-year-old predecessor Ratan Tata, who said the scion of the founding family will only fill in the role temporarily. The conglomerate has set up a committee to search for a successor.

Mistry had focused on being fiscally prudent and exiting non-profitable businesses during the nearly four years he was in charge. That was a contrast to the group’s acquisitive tendencies under Ratan Tata, who spearheaded the purchases of Jaguar Land Rover and steelmaker Corus Group Plc.

Speth and Chandrasekaran were appointed to the Tata Sons board as additional directors, Tata Sons said in a statement on Tuesday. Their appointment was in recognition “for their exemplary leaderships in their companies,” the statement said.

Tata Group on Thursday said it ousted Mistry because of a growing “trust deficit” with the biggest shareholders of the tea-to-software giant after the former head accused directors of India’s largest conglomerate of wrongfully dismissing him.

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  1. J
    juma
    Oct 28, 2016 at 7:16 am
    “for their exemplary leaderships in their companies,” the statement said.lt;br/gt;lt;br/gt;There is nothing called exemplary work as directors. It appears there is lot of pressure from brahmin central syndicate to appoint a brahmin as President of TATA group. lt;br/gt;lt;br/gt;If the central Brahmin syndicate could appoint Satya Nadala as head of Microsoft, ......
    Reply
    1. A
      ashok s
      Oct 28, 2016 at 12:16 pm
      Why not look at different angle ,say politics. After brexit their is opinion to be explore . say example tata s told mistry to quit ,which has happened and after that re cajoled your position after USA election and next referendum.lt;br/gt;This has happened before during saklatwala taking the charge .
      Reply
      1. T
        T DUTTA
        Oct 28, 2016 at 9:35 am
        COMPANIES ACT MUST BE AMENDED TO ABOLISH CASTING VOTE SYSTEM IN BOARD MEETINGS
        Reply
        1. T
          T DUTTA
          Oct 28, 2016 at 9:32 am
          SYSTEM OF CASTING VOTE MUST BE ABOLISHED----HOW CAN ONE PERSON VOTE TWICE?---IN PARLIAMENT ELECTIONS OR EMBLY ELECTIONS IF ANY VOTER VOTES TWICE HE GOES TO JAIL---IN BOARD MEETINGS NO ONE SHOULD VOTE TWICE---IF THERE IS A TIE THEN A BIGGER COMMIITTEE SHOULD BE FORMED TO TAKE A DECISION---moreover chairman has to exercise the casting vote in the same direction of his original vote---he cannot vote in the opposite direction----[THIS IS A GENERAL COMMENT NOT DIRECTED AGAINST ANYONE---ANY SIMILARITY IS ONLY ACCIDENTAL AND NOT DELEBERATE]
          Reply
          1. I
            Ind
            Oct 28, 2016 at 1:14 pm
            GVK deserves to be next Tata chairman.
            Reply
            1. R
              raj
              Oct 28, 2016 at 8:11 am
              I agree their Leadership Potential but during the tenure of Chandra only TCS removed several ociates in the year 2014 which is against to Tata policy and it made huge ruckus . Hope Trust forgot it
              Reply
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