Tata Sons defers N Chandrasekaran’s third-term renewal. Photo: ANI.
Tata Sons chairman N Chandrasekaran’s reappointment for a third term, set to begin in February 2027, did not advance during Tuesday’s board meeting. The roadblock to the process took place after concerns were raised by Tata Trusts chairman Noel Tata, according to a report by Economic Times.
The question of initiating Chandrasekaran’s renewal was discussed at length during the meeting at Bombay House, the group’s headquarters in Mumbai. However, the matter was deferred rather than put to a vote after Noel Tata highlighted losses in some of the group’s newer businesses and expressed concerns over the pace of capital deployment.
“The discussion expanded into a review of performance, capital allocation, and governance,” ET repored quoting sources.
“Given the importance of alignment between Tata Sons and the Trusts, it was agreed that the decision should be deferred rather than pushed to a vote.”
According to the reports, all board members, including Venu Srinivasan, Harish Manwani, Anita George, and Saurabh Agrawal, attended the meeting. The report added that none of the other directors objected to the reappointment. Also present at Bombay House was Noel Tata’s son, Neville Tata, who is not a Tata Sons board member but sits on the board of the Sir Dorabji Tata Trust.
Ahead of the February 24 board meeting, Noel Tata reportedly reached out to several trustees to explore whether they would reconsider an earlier unanimous decision supporting Chandrasekaran’s continuation. Some trustees, however, were unwilling to convene before the board meeting, Moneycontrol reported.
Last year, Tata Trusts had unanimously resolved to back Chandrasekaran’s reappointment, according to reports. Trust nominee director Venu Srinivasan and independent director Anita George supported proceeding with the reappointment, arguing that losses in newer ventures were part of long-term investment strategies.
Noel Tata is understood to have indicated that certain conditions would need to be addressed before the Trusts would be comfortable endorsing another term. These included:
Keeping Tata Sons unlisted
Maintaining balance sheet discipline
Strengthening oversight of high-risk capital expenditures
Containing losses from acquisitions such as Air India and BigBasket
The decision comes months after the exits of long-time trustees Mehli Mistry and Pramit Jhaveri, at a time when several decisions regarding the composition of the Trusts are under consideration.
Chandrasekaran joined the Tata Group in 1987 and rose through the ranks to become CEO of Tata Consultancy Services (TCS) before assuming the chairmanship of Tata Sons in February 2017. Under his leadership, the group’s 15 largest listed companies nearly doubled in revenue and profits.
He has overseen high-stakes strategic moves, including plans for India’s first homegrown semiconductor fabrication facility, the acquisition of loss-making Air India, and guiding TCS through disruption caused by artificial intelligence.
Founded in 1868 by Parsi industrialist Jamsetji Nusserwanji Tata in Mumbai, the Tata Group has largely remained under family leadership. In 2012, Ratan Tata stepped down as chairman, handing over to Cyrus Mistry of the Shapoorji Pallonji Group.
A dramatic boardroom fallout in 2016 led to Mistry’s abrupt removal by Tata Sons, widely seen as a move orchestrated by Ratan Tata.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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