A day after Tata Group abruptly replaced Cyrus Mistry as chairman, Dr Ralf Speth, CEO of Jaguar Land Rover, and N Chandrasekaran, CEO & MD of TCS was appointed as Additional Directors on the Tata Sons Board. “Dr Ralf Speth, CEO of Jaguar Land Rover, and Mr N Chandrasekaran, CEO & Managing Director of Tata Consultancy Services (TCS), have been appointed as Additional Directors on the Tata Sons Board,” the company said in a statement. Commenting on their appointment, Ratan Tata who took over as the Interim Chairman, said: “This is in recognition of their exemplary leadership in their companies.” With the appointments of Speth and Chandrashekharan, Tata Sons board has expanded to 12 members. Mistry’s dismissal as chairman – he remains a board member – stunned even Tata insiders and senior executives, people in the company told media agencies. Earlier in the day, Ratan Tata asked CEOs of group firms to act as leaders in their respective markets and enhance returns to shareholders. Tata said that he had assumed the role of the interim chairman for stability and continuity so that there is no vacuum.
“This will be for a short time. A new permanent leadership will be in place,” he said. Mistry was appointed on November 2011 as the Deputy Chairman of Tata Sons, whose board he had entered in 2006. He was made the chairman on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons. Media reports say that replacements for Mistry include Noel Tata and Indira Nooyi – the same names that were in the race back in 2012 before his appointment.
Meanwhile, shake-up in the Tata Group resulted in continuous selling in the stock market. Tata Steel, Tata Motors, Tata Power and TCS felt the heat in the Nifty basket, falling up to 2.51 per cent. Shares of other Tata Group companies on BSE ran down too. Tata Elxsi (1.40 per cent), Tata Communications (2.26 per cent), Indian Hotels (3.16 per cent), Tata Chemicals (2.09 per cent), Titan (1.19 per cent) and Tata Metaliks (4.97 per cent) were also among the losers.
(With agency inputs)