Tata Board Split on Chandrasekaran’s Third Term, Noel Proposes New Leadership Model

As per the Mint report, a leadership debate has emerged within Tata Sons, indicating the board is split on granting chairman N Chandrasekaran a third term. Noel Tata has introduced a new three-tier leadership model, proposing a more diversified structure following Chandrasekaran’s current term, which ends in 2027.

Leadership Divide: Noel Tata’s New Structure Proposal Vs Existing Model

As per the Mint report, Noel Tata, now chair of Tata Trusts, reportedly seeks to revamp Tata Sons’ leadership by splitting the chairman’s role into 3: CEO, MD, and deputy CEO. This shift is to be implemented after the conclusion of N Chandrasekaran’s existing term in 2027. While Noel backs Chandrasekaran’s placement as a non-executive chairman, the proposal has reportedly met resistance from the trustees.

Current Board Preferences Lean Towards Continuity

Tata Sons trustees are inclined towards extending N Chandrasekaran’s contract into a third term, despite him reaching the retirement age cap of 65 in 2027. Many within the board argue that his leadership has driven robust growth and investments across emerging sectors, favouring stability during the ongoing expansion phase.

Proven Performance Under Chandrasekaran’s Leadership

Since 2017, Chandrasekaran’s leadership has been credited with reshaping Tata Sons financially and strategically. He reduced group debt by over ₹30,000 crore and led turnarounds in Tata Steel and Tata Motors. Investments were channelled into aviation, semiconductors, and digital initiatives, securing a stronger group presence in new-age sectors.

Read More: Historical Context: Tata Capital’s Growth Since Its Founding in 2007!

Tata Trusts & Tata Sons: Power Dynamics and Governance

Tata Trusts, holding a 65.9% stake in Tata Sons, holds decisive influence, including the right to appoint up to one-third of the board. The current board includes Chandrasekaran, Noel Tata, Venu Srinivasan, Saurabh Agrawal, Harish Manwani, and Anita Marangoly George, indicating a complex web of decision-making as leadership dynamics evolve.

Conclusion

The internal disagreement on leadership succession highlights differing visions for Tata Sons’ future. With Noel Tata advocating structural changes and the trustees preferring continuity, the next few years will be critical in shaping the leadership framework of one of India’s largest conglomerates.

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