Mahindra to be non-executive chairman; Goenka remains MD & CEO for one more year.
A generational shift is underway at Mahindra and Mahindra (M&M). On Friday, the company announced its succession plans for top board level positions, which includes the transition of Anand Mahindra to the role of non-executive chairman of the board in the new financial year.
The company in a statement said, “This will further enhance the independence of the board. As non-executive chairman, Mahindra will serve as a mentor and sounding board for the managing director on issues to be presented to the board, especially in the areas of strategic planning, risk mitigation and external interface. In addition, he will be available to provide feedback and counsel to the managing director on key issues facing the enterprise.”
The succession plan has been put in place keeping in view that a number of key leaders will be retiring over the next 15 months, M&M said. At the same time, Pawan Goenka will be re-designated as managing director and CEO with effect from April 1, 2020.
M&M pointed out that there will be no change in any reporting relationships as a result of this re-designation. “Goenka will continue to retain direct responsibility of Ssangyong Motors as chairman of its board till his retirement date,” M&M said. Goenka will retire on April 1, 2021.
Goenka will be succeeded by Anish Shah —currently the group president (strategy) of the company — who will gradually move on to become the managing director and CEO on April 2, 2021, with full oversight of all group businesses, in two phases.
Shah will join the M&M board as deputy managing director and group CFO on April 1, 2020, with responsibility for the group corporate office and full oversight of all business sectors of the group other than auto and farm sectors (AFS). He will have direct accountability to the board for his non-AFS responsibilities.
At the same time, VS Parthasarathy, who is currently the group chief financial officer, will transition to a new role with effect from April 1, 2020. He will head the mobility services sector, which is a new sector being created by combining the after-market sector, Mahindra Logistics and Auto Mobility Services.
Rajesh Jejurikar will join the M&M board as executive director (AFS) on April 1, 2020, with direct operational responsibility and accountability for the sectors. He will report to Goenka for the transition year and then report to Shah from April 2, 2021, onwards, M&M said.
The firm also indicated that on April 1, 2020, CP Gurnani, who is the managing director and CEO of Tech Mahindra, will join the M&M board as a non-executive director.