After a much controversial public spat with Cyrus Mistry following his sacking as the chairman of Tata Sons, the company today announced TCS CEO Natarajan Chandrasekaran as their new chairman.
Natarajan Chandrasekaran, CEO of TCS, has been appointed as the executive chairman of Tata Sons, the holding company of Tata group. The appointment comes after a much controversial public spat between Ratan Tata and Cyrus Mistry following the latter’s sacking as the chairman of Tata Sons. The decision to select Chandrasekaran as the executive chairman was taken unanimously during a meeting of the Board of directors of Tata Sons today. Chandrasekaran is also one of the members of the board.
In a statement, the Board of Tata Sons said: “Mr. Chandrasekaran has demonstrated exemplary leadership as the Chief Executive Officer and Managing Director of Tata Consultancy Services. We believe he will now inspire the entire Tata group to realise its potential acting as leaders in their respective businesses, always in keeping with our value system and ethics and adhering with the practices of the Tata group which have stood it in good stead.”
Chandrasekaran was the CEO and managing director of Tata Consultancy Services since 2009. A Tata lifer, he had joined the company in 1987. He was appointed as a Director on the board of Tata Sons on October 25, 2016.
Earlier, reports had said Tata Sons might set up posts for two vice-chairmen of the company. Although the group had set a deadline of February 24, 2017 for appointing new chairman, it made the announcement, today.
In October, the unceremonious dismissal of Mistry, which was attributed to his performance, had the backing of the Tata Trusts, which hold a commanding 66% stake in Tata Sons.
N Chandrasekaran, 53, popularly called Chandra, headed the group’s most valuable company, Tata Consultancy Services, which is one of the largest cash cows of the group. TCS is also India’s most valuable company, and with a capitalisation of over $70 billion, is ahead of Reliance Industries. Chandrasekaran spearheaded TCS into becoming India’s largest software exporter. He joined the company in 1987 after completing Masters in Computer Applications from Regional Engineering College, Trichy, Tamil Nadu.
N Chandrasekaran was elevated to the board position at the group’s holding company, Tata Sons, on October 25, along with Jaguar Land Rover boss Ralf Speth, a day after Mistry, who was chairman for nearly four years, was suddenly sacked.
Also on the list of the probable new Chairman of the group was the non-executive chairman of Hindustan Unilever, Harish Manwani as the new chairman of the group. Being appointed as the global chief operating officer for the Unilever in June 2011, Harish Manwani retired in December 2014, after his service for more than 38 years.
The sacking of Cyrus Mistry came after four years of him at the helm of the Tata Sons. Ratan Tata, whom Mistry had replaced on December 29, 2012, held the interim chairman post four months. Although no initial reasons were given for Mistry’s removal, it was reported that Tata Sons was unhappy with Mistry’s approach of shedding non-profit business and concentrating only on cash cows.
Earlier the company had also accused Mistry of confidentiality breach and had promised legal actions against him. Mistry had reportedly filed a petition seeking the intervention of the National Companies Law Tribunal, accusing the conglomerate of shareholder oppression and mismanagement. Tata Sons, in a two-page legal notice from its law firm on Tuesday seen by Reuters, had alleged that Mistry had “deliberately” attached confidential information related to the company to his petition, even without “any requirement to do so.”