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Tata Chairman Reappointment Delayed Amidst Internal Disagreement
24 Feb
Summary
- Tata Group chairman's reappointment decision was deferred.
- Disagreement arose over losses in some group companies.
- Tata Trusts, holding 66% stake, has significant influence.
The reappointment of N Chandrasekaran as chairman of India's Tata Group for another five years has been deferred, according to reports. The decision was postponed during a board meeting where Tata Trusts chairman Noel Tata reportedly raised concerns about losses in specific group companies.
Chandrasekaran, who joined Tata Group in 1987 and became chairman in February 2017, was seeking a second five-year term. The report suggests that Noel Tata requested a written commitment from Chandrasekaran that Tata Sons would never be listed, a point of contention.
Some board members supported Chandrasekaran, arguing that isolated losses should not overshadow his overall contributions. However, the board ultimately decided to defer the decision, with Chandrasekaran himself reportedly urging for the postponement.
Tata Trusts owns a 66% stake in Tata Sons, which oversees numerous Tata companies including Jaguar Land Rover, Tata Consultancy Services, Tata Motors, and Air India. This significant stake gives Tata Trusts considerable power over strategic decisions.
The disagreement within the Tata Trusts leadership has sparked concerns about a potential repeat of a public spat in 2016 between the charity and Tata Sons, which previously impacted the group's reputation. The group was founded in Mumbai in 1868.
Chandrasekaran has navigated several challenges during his tenure, including regulatory scrutiny of Air India, pricing pressures at Tata Consultancy Services, and a cyberattack on Jaguar Land Rover in the past year.
