The Tata Sons board has approved a fresh five-year term for N Chandrasekaran as executive chairman of the Tata Group, reversing his decision last month not to seek reappointment, according to sources cited by Reuters and news agency ANI.The reappointment was approved at a Tata Sons board meeting held in Mumbai on Thursday. Chandrasekaran’s current five-year term is due to end in February 2027.The reasons behind the change in his decision were not immediately clear, Reuters reported.Chandrasekaran had said last month that he would not seek another term. His decision had triggered discussions within Tata Sons over succession and the future leadership of the conglomerate.
Reappointment comes after succession debate
The development comes after Tata Trusts had signalled interest in a change at the top.Tata Trusts chairman Noel Tata had wanted the Tata Sons board to formally begin the process of finding a successor to Chandrasekaran, whose current term ends on February 20, 2027.According to the sources, Noel Tata believed Chandrasekaran’s decision not to seek another term should stand. Sir Dorabji Tata Trust had also indicated the need to constitute a selection panel to identify Chandrasekaran’s successor.Also read: Trusts keen on change amid buzz that Chandra may be asked to stay onTata Trusts had unanimously resolved last year to recommend extending Chandrasekaran’s tenure by another five years. However, at a February board meeting, four directors supported the extension while Noel Tata opposed it.Chandrasekaran subsequently wrote to the Tata Sons board saying the proposal to extend his tenure had not secured unanimous support, with one board member opposing it.
No decision on Tata Sons listing
As per ANI, while the board approved Chandrasekaran’s reappointment, no decision has been taken on the listing of Tata Sons.The future structure of Tata Sons had been among the issues discussed in the context of the leadership transition.Under Tata Sons’ articles of association, a five-member panel is required to recommend a candidate for chairman, with the formal appointment made by the Tata Sons board. Three members are to be jointly appointed by the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, while the remaining two are nominated by the Tata Sons board.The board’s Thursday decision means the succession process that had been under discussion following Chandrasekaran’s announcement is no longer immediately required for the chairmanship.Chandrasekaran has served as chairman of Tata Sons since 2017 and was previously reappointed for a second five-year term.
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