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Will not seek reappointment after tenure ends

New Delhi. Tata Sons Chairman N. Chandrasekaran on Wednesday said he will not seek reappointment after his current term ends on February 20, 2027. This statement by Chandrasekaran has ended the uncertainty that had been going on for the last several months regarding the leadership of the parent company of Tata Group.

N. Chandrasekaran said Tata Sons' majority shareholders Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously recommended extension of his tenure by five years. After this, the Nomination and Remuneration Committee and Board of Directors of Tata Sons also recorded this proposal and recommended it. He said the proposal was placed in the Tata Sons board meeting on February 24 but could not be taken forward as one director did not support it.

Chandrasekaran said in the statement, “Due to the lack of unanimous support, I chose to postpone this decision.” He said that even after six months of that meeting of the Board of Directors, no decision has been taken in this matter. Clarity on leadership is essential as Tata Sons is working on several important projects which are at critical stages.

In the circumstances, I have today informed the Board of Directors of Tata Sons that I have decided not to put forward my name for reappointment after the expiry of my term on February 20, 2027, the chairman said. He asked the Board of Directors to take an early decision on his successor to ensure a smooth transition of leadership.

Chandrasekaran, who spent 40 years in the Tata Group, became the chairman of Tata Sons in 2017. Before this he was the Chief Executive Officer (CEO) of Tata Consultancy Services. This development comes amid reports of differences between Tata Sons and Tata Trusts over Chandrasekaran's reappointment.

Tata Sons is the main (holding) company of the Tata Group. Tata Trust holds the majority stake in it and controls more than 30 group companies including Tata Consultancy Services, Tata Motors and Air India.

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