N Chandrasekaran resigns as Tata Sons Chairman

Chandrasekaran joined the Tata group in 1987. He became TCS‘ CEO in 2009 ⁠before taking ‌over as Tata Sons chair in ​2017.

Tata Sons ⁠controls ​more than 30 companies in the conglomerate, including Tata Consultancy Services (TCS), Tata Motors and Air India, but is in turn 66% owned by Tata Trusts, the group’s charitable arm.

N Chandrasekaran decides not to seek second term at Tata Sons

Tata Sons Chairman N Chandrasekaran said he will not seek reappointment when his current term ends on February 20, 2027.

Chandrasekaran said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust – majority shareholders in Tata Sons – had unanimously recommended extending his term by five years, with the proposal subsequently recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board.

The proposal was tabled at a Tata Sons Board meeting on February 24 but was not carried through after one Board member did not support it, Chandrasekaran said.

“In the absence of unanimous support, I chose to defer the decision,” he said in a statement. Chandrasekaran said no resolution had been reached in the six months since that Board meeting, adding that clarity over leadership was important as Tata Sons oversees several strategic projects at critical stages. “Under these circumstances, earlier today, I have communicated to the Tata Sons Board, that I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027,” he said.

He asked the Board to decide on his successor soon to ensure a smooth transition. Chandrasekaran, who has spent 40 years with the Tata Group, became chairman of Tata Sons in 2017 after previously serving as chief executive of Tata Consultancy Services. The development comes amid reported differences between Tata Sons and Tata Trusts over Chandrasekaran’s reappointment.

Tata Group Share price

The Tata Group stocks have seen a sharp decline following the news.