Tata Sons chairman N Chandrasekaran’s reappointment put on hold

Mumbai: The discussion on extending Tata Sons executive chairman N Chandrasekaran’s tenure for a third term was reportedly deferred after differences surfaced during a board meeting the other day.

The proposed reappointment requires approval through a special resolution and would involve granting an exception to Tata Sons’ policy that sets 65 as the retirement age for non-executive roles. Chandrasekaran, who assumed charge as executive chairman in 2017, will turn 63 in June.

According to an ET report, the board deliberations centred on key expectations from the chairman. “Second is that the chairman should ensure there’s no debt in the company. Third is that he has to make sure the company’s coffers are not emptied due to excessive capital expenditure in high-risk investments. And the fourth is that losses stemming from acquisitions such as Air India and Big Basket should be contained.”

Chandrasekaran has led the conglomerate through a phase marked by consolidation, balance sheet strengthening and tighter capital allocation since taking over in 2017.

Anita George, who heads the board’s reappointment committee, supported the extension, noting that losses in greenfield ventures were anticipated and adequately provided for, the report said.

After some directors proposed putting the matter to vote, Chandrasekaran suggested postponing the discussion. He is learnt to have said that it would be prudent to defer the decision, emphasising that an institution such as the Tata group can function effectively only when Tata Sons and Tata Trusts remain aligned in their decision-making.