Updated: October 25, 2016 11:59:25 am
An unnamed member of the Tata Sons board has reportedly told NDTV that the removal of chairman Cyrus Mistry was in consideration for many months. This suggests that the removal was based on Mistry’s performance. Only two of the Tata Group companies — TCS and JLR — have been showing good numbers in the past few quarters.
WATCH VIDEO: Cyrus Mistry’s Career Timeline
“The decision has been long in consideration and it entirely linked to Mistry’s performance as chairman,” the board member was quoted by NDTV. The member said the board has had four years to assess the performance. “Since this is a professionally run company performance was a key factor,” he told NDTV, adding that the change had to be done.
“The guillotine had to drop,” he said when asked about the abrupt manner in which the decision was taken. Mistry had a six-month notice period.
There are reports that the Pallonji family could challenge the move, but it seems the Tata Group too has good legal advise before going ahead.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.