Confirmed! N Chandrasekaran Will Be Tata Sons Chairman For Next 5 Years; Board, Ratan Tata Approves

With the support and approval of the board of Tata Trusts and its chairman Ratan Tata, Tata Sons chairman N Chandrasekaran seems to be all set to be appointed for a second term.

Charman Reappointment For Tata Sons

The same is ratified during a board meeting which is being held today at Bombay House, as per the sources. 

Not only that, many top officials close to the holding company confirmed that his reappointment is a “non-issue”. 

So far, Tata Sons did not comment.

in October 2016, Chandra has joined the Tata Sons board, was designated chairman in January 2017 and took official charge in February 2017. 

Beside this, he also chairs the boards of operating companies such as Tata Steel, Tata Motors, Tata Power and TCS.

Sources say that a second term had already been “informally ratified” as Chandrasekaran’s performance and conduct had been appreciated by stakeholders.

Reappointment Helps In Stability And Continuity

During this time, Chandrasekaran had taken on various challenges, betting on future growth opportunities while seeking counsel from Ratan Tata on crucial group plans and important policy matters. 

Apart form this, Chandrasekaran has also played a major supportive role in the victory of the Tata Group in the long legal battle with Cyrus Mistry.

Here Cyrus Mistry is the former chairman and estranged shareholders of Tata Sons, who has helped in further strengthening of the case for a second term. 

Another feather in his cap is the recent successful but challenging acquisition of Air India.

Officially, Chandrasekaran’s first term ends in February 2022.

Usually, term renewal happens a week before the term ends like the chairman Ratan Tata prior to ousted chairman Cyrus Mistry, official said.

Officials believe that the reappointment will help in stability and continuity to stakeholders and investors, contrary to the tumultuous situation during Mistry’s ouster.

Apart form this the Trusts has also taken its time in appointing more nominees on the board, owing to its confidence in the chairman.

The insiders say that the chairman of Tata Sons usually gets a five-year term when selected.

A senior group official said, “The chairman’s reappointment is a non-issue and will appear as a routine board agenda item in any of the forthcoming meets. The previous chairman’s ouster was an aberration in the holding company’s history and is certainly not comparable to the current chairman,”.