A day after Cyrus Mistry was replaced as the chairman of Tata Sons, Ratan Tata, who assumed charge as interim chairman, told reporters in Mumbai that his appointment was for a short-term and the process to succeed him would soon begin. “Assumed role of interim chairman for stability and continuity so that there is no vacuum,” Tata said.
In a message to the top executives of the group, Tata said “leaders of group companies should focus on their businesses without being concerned about change in top leadership”.
“Act as leaders in respective markets and focus on enhancing returns to shareholders,” he added.
The move to replace Mistry at the top has come as a surprise since he had spent just four years at the helm. Tata Sons, in its statement on Monday, said that Mistry was let go keeping in mind the “long-term interest” of the company. “The company’s board and the principal shareholders in its collective wisdom took this decision, which they thought may be appropriate in the long term interest of Tata Sons and the Tata Group,” the company spokesperson told reporters.
Recollecting his past association with the executives, Tata said: “I look forward to working with you as we have worked together in the past. An institution must exceed the people who lead it. I am proud of all of you, and let us continue to build the group together.”
Tata left the venue without addressing the media waiting outside.
Tata Sons has already announced that a Selection Committee has been constituted to choose a new Chairman, and will complete its mandate in four months.