Tata Sons may pick internal candidate to replace N Chandrasekaran: Report
Tata Sons has begun the search for N Chandrasekaran's successor, with internal names under discussion. The process is stalled for now because restrictions on the Sir Ratan Tata Trust are holding up the selection committee.
Tata Sons could have a new chairman in place by the end of 2026, with the Tata Group potentially leaning towards an internal candidate familiar with its businesses and governance structure, reported Moneycontrol.
The search for N Chandrasekaran's successor has already begun after he decided not to offer himself for reappointment when his current tenure ends on February 20, 2027. But the process is currently held up by restrictions preventing the Sir Ratan Tata Trust (SRTT) from convening meetings.
Once that hurdle is resolved and the five-member Selection Committee is formally constituted, the search for the next Tata Sons chairman could take around one and a half to two months, Moneycontrol reported, citing people aware of the internal discussions.
INTERNAL NAMES COULD GET A LOOK
The Tata Trusts may lean towards an internal candidate who already understands the group's complex businesses and its governance relationship with Tata Trusts, although discussions are still at an early stage and there is no final decision.
Two names that could potentially be considered are TV Narendran, CEO and managing director of Tata Steel, and Praveer Sinha, CEO and managing director of Tata Power, according to the report.
Narendran is 61, while Sinha is 64.
There is no shortlist yet, and the eventual committee could consider both internal and external candidates.
The preference for an internal candidate, if it takes shape, would have a precedent. Chandrasekaran himself was an internal candidate when he was chosen as Tata Sons chairman in 2017. He had spent nearly three decades at Tata Consultancy Services (TCS) and was its CEO and managing director when the selection committee unanimously recommended him for the top job.
WHY THE SEARCH IS CURRENTLY STUCK
The biggest immediate hurdle is not finding candidates but getting the selection mechanism operational.
The Sir Ratan Tata Trust is currently restrained from convening meetings following a direction from the Maharashtra Charity Commissioner. Tata Trusts had said in May that the direction was issued ex parte, without SRTT being given notice or a hearing, and that it understood the direction to apply only to SRTT.
This matters because SRTT and the Sir Dorabji Tata Trust (SDTT) are the two principal Tata Trusts, and both need to participate in constituting the selection committee.
Under Article 118 of Tata Sons' Articles of Association, the committee has five members. Three are jointly nominated by SDTT and SRTT, one is nominated by and from the Tata Sons board, and one independent outside member is selected by the board.
The three nominees of the Tata Trusts therefore form a majority of the five-member committee.
Tata Trusts collectively owns around 66% of Tata Sons, making its role in choosing the chairman particularly important.
Until the restriction on SRTT is resolved and its board can meet, the selection committee cannot be constituted.
NOEL TATA COULD HEAD THE COMMITTEE
The composition of the committee itself could also provide clues about how the succession process will unfold.
According to Moneycontrol, Tata Trusts chairman Noel Tata is likely to be on the committee and could serve as its chairman.
Tata Sons board member Harish Manwani, who heads the holding company's nominations and remuneration committee, could represent the Tata Sons board on the search panel.
The remaining members will include the nominees of the two principal Tata Trusts and an independent outside member, as provided under the company's Articles of Association.
If the restrictions involving SRTT are resolved in the coming weeks, people involved in the discussions expect the committee to complete the search within around two months, leaving enough time for a transition before Chandrasekaran's term ends in February 2027.
WHAT WILL THE NEW CHAIRMAN INHERIT?
The next Tata Sons chairman will take charge of a group that has expanded significantly into multiple sectors during Chandrasekaran's tenure.
The chairman will oversee businesses spanning technology, automobiles, steel, power, aviation, consumer products, hospitality, financial services, electronics and semiconductor manufacturing.
That makes familiarity with the Tata Group's businesses and its relationship with Tata Trusts particularly important.
It also means the next chairman will inherit several major businesses and long-term investments that require continued strategic direction.
For now, however, the first task is to get the selection process moving.
Tata Sons has used five-member search committees for its previous two chairman appointments. In 2010, a committee was formed to find Ratan Tata's successor and eventually selected Cyrus Mistry, who took over in 2012.
After Mistry was removed in 2016, Tata Sons constituted another five-member committee headed by Ratan Tata. It included Venu Srinivasan, Amit Chandra, Ronen Sen and independent member Lord Kumar Bhattacharyya. That committee selected Chandrasekaran, who became Tata Sons chairman in February 2017.
This time, the group has a longer transition window. Chandrasekaran's current tenure runs until February 2027, giving Tata Sons several months to complete the process once the selection committee is operational.
For now, the biggest question is whether Tata Sons will ultimately choose someone from within its own ranks or look outside the group.
Tata Sons could have a new chairman in place by the end of 2026, with the Tata Group potentially leaning towards an internal candidate familiar with its businesses and governance structure, reported Moneycontrol.
The search for N Chandrasekaran's successor has already begun after he decided not to offer himself for reappointment when his current tenure ends on February 20, 2027. But the process is currently held up by restrictions preventing the Sir Ratan Tata Trust (SRTT) from convening meetings.
Once that hurdle is resolved and the five-member Selection Committee is formally constituted, the search for the next Tata Sons chairman could take around one and a half to two months, Moneycontrol reported, citing people aware of the internal discussions.
INTERNAL NAMES COULD GET A LOOK
The Tata Trusts may lean towards an internal candidate who already understands the group's complex businesses and its governance relationship with Tata Trusts, although discussions are still at an early stage and there is no final decision.
Two names that could potentially be considered are TV Narendran, CEO and managing director of Tata Steel, and Praveer Sinha, CEO and managing director of Tata Power, according to the report.
Narendran is 61, while Sinha is 64.
There is no shortlist yet, and the eventual committee could consider both internal and external candidates.
The preference for an internal candidate, if it takes shape, would have a precedent. Chandrasekaran himself was an internal candidate when he was chosen as Tata Sons chairman in 2017. He had spent nearly three decades at Tata Consultancy Services (TCS) and was its CEO and managing director when the selection committee unanimously recommended him for the top job.
WHY THE SEARCH IS CURRENTLY STUCK
The biggest immediate hurdle is not finding candidates but getting the selection mechanism operational.
The Sir Ratan Tata Trust is currently restrained from convening meetings following a direction from the Maharashtra Charity Commissioner. Tata Trusts had said in May that the direction was issued ex parte, without SRTT being given notice or a hearing, and that it understood the direction to apply only to SRTT.
This matters because SRTT and the Sir Dorabji Tata Trust (SDTT) are the two principal Tata Trusts, and both need to participate in constituting the selection committee.
Under Article 118 of Tata Sons' Articles of Association, the committee has five members. Three are jointly nominated by SDTT and SRTT, one is nominated by and from the Tata Sons board, and one independent outside member is selected by the board.
The three nominees of the Tata Trusts therefore form a majority of the five-member committee.
Tata Trusts collectively owns around 66% of Tata Sons, making its role in choosing the chairman particularly important.
Until the restriction on SRTT is resolved and its board can meet, the selection committee cannot be constituted.
NOEL TATA COULD HEAD THE COMMITTEE
The composition of the committee itself could also provide clues about how the succession process will unfold.
According to Moneycontrol, Tata Trusts chairman Noel Tata is likely to be on the committee and could serve as its chairman.
Tata Sons board member Harish Manwani, who heads the holding company's nominations and remuneration committee, could represent the Tata Sons board on the search panel.
The remaining members will include the nominees of the two principal Tata Trusts and an independent outside member, as provided under the company's Articles of Association.
If the restrictions involving SRTT are resolved in the coming weeks, people involved in the discussions expect the committee to complete the search within around two months, leaving enough time for a transition before Chandrasekaran's term ends in February 2027.
WHAT WILL THE NEW CHAIRMAN INHERIT?
The next Tata Sons chairman will take charge of a group that has expanded significantly into multiple sectors during Chandrasekaran's tenure.
The chairman will oversee businesses spanning technology, automobiles, steel, power, aviation, consumer products, hospitality, financial services, electronics and semiconductor manufacturing.
That makes familiarity with the Tata Group's businesses and its relationship with Tata Trusts particularly important.
It also means the next chairman will inherit several major businesses and long-term investments that require continued strategic direction.
For now, however, the first task is to get the selection process moving.
Tata Sons has used five-member search committees for its previous two chairman appointments. In 2010, a committee was formed to find Ratan Tata's successor and eventually selected Cyrus Mistry, who took over in 2012.
After Mistry was removed in 2016, Tata Sons constituted another five-member committee headed by Ratan Tata. It included Venu Srinivasan, Amit Chandra, Ronen Sen and independent member Lord Kumar Bhattacharyya. That committee selected Chandrasekaran, who became Tata Sons chairman in February 2017.
This time, the group has a longer transition window. Chandrasekaran's current tenure runs until February 2027, giving Tata Sons several months to complete the process once the selection committee is operational.
For now, the biggest question is whether Tata Sons will ultimately choose someone from within its own ranks or look outside the group.
Tata Sons could have a new chairman in place by the end of 2026, with the Tata Group potentially leaning towards an internal candidate familiar with its businesses and governance structure, reported Moneycontrol.
The search for N Chandrasekaran's successor has already begun after he decided not to offer himself for reappointment when his current tenure ends on February 20, 2027. But the process is currently held up by restrictions preventing the Sir Ratan Tata Trust (SRTT) from convening meetings.
Once that hurdle is resolved and the five-member Selection Committee is formally constituted, the search for the next Tata Sons chairman could take around one and a half to two months, Moneycontrol reported, citing people aware of the internal discussions.
INTERNAL NAMES COULD GET A LOOK
The Tata Trusts may lean towards an internal candidate who already understands the group's complex businesses and its governance relationship with Tata Trusts, although discussions are still at an early stage and there is no final decision.
Two names that could potentially be considered are TV Narendran, CEO and managing director of Tata Steel, and Praveer Sinha, CEO and managing director of Tata Power, according to the report.
Narendran is 61, while Sinha is 64.
There is no shortlist yet, and the eventual committee could consider both internal and external candidates.
The preference for an internal candidate, if it takes shape, would have a precedent. Chandrasekaran himself was an internal candidate when he was chosen as Tata Sons chairman in 2017. He had spent nearly three decades at Tata Consultancy Services (TCS) and was its CEO and managing director when the selection committee unanimously recommended him for the top job.
WHY THE SEARCH IS CURRENTLY STUCK
The biggest immediate hurdle is not finding candidates but getting the selection mechanism operational.
The Sir Ratan Tata Trust is currently restrained from convening meetings following a direction from the Maharashtra Charity Commissioner. Tata Trusts had said in May that the direction was issued ex parte, without SRTT being given notice or a hearing, and that it understood the direction to apply only to SRTT.
This matters because SRTT and the Sir Dorabji Tata Trust (SDTT) are the two principal Tata Trusts, and both need to participate in constituting the selection committee.
Under Article 118 of Tata Sons' Articles of Association, the committee has five members. Three are jointly nominated by SDTT and SRTT, one is nominated by and from the Tata Sons board, and one independent outside member is selected by the board.
The three nominees of the Tata Trusts therefore form a majority of the five-member committee.
Tata Trusts collectively owns around 66% of Tata Sons, making its role in choosing the chairman particularly important.
Until the restriction on SRTT is resolved and its board can meet, the selection committee cannot be constituted.
NOEL TATA COULD HEAD THE COMMITTEE
The composition of the committee itself could also provide clues about how the succession process will unfold.
According to Moneycontrol, Tata Trusts chairman Noel Tata is likely to be on the committee and could serve as its chairman.
Tata Sons board member Harish Manwani, who heads the holding company's nominations and remuneration committee, could represent the Tata Sons board on the search panel.
The remaining members will include the nominees of the two principal Tata Trusts and an independent outside member, as provided under the company's Articles of Association.
If the restrictions involving SRTT are resolved in the coming weeks, people involved in the discussions expect the committee to complete the search within around two months, leaving enough time for a transition before Chandrasekaran's term ends in February 2027.
WHAT WILL THE NEW CHAIRMAN INHERIT?
The next Tata Sons chairman will take charge of a group that has expanded significantly into multiple sectors during Chandrasekaran's tenure.
The chairman will oversee businesses spanning technology, automobiles, steel, power, aviation, consumer products, hospitality, financial services, electronics and semiconductor manufacturing.
That makes familiarity with the Tata Group's businesses and its relationship with Tata Trusts particularly important.
It also means the next chairman will inherit several major businesses and long-term investments that require continued strategic direction.
For now, however, the first task is to get the selection process moving.
Tata Sons has used five-member search committees for its previous two chairman appointments. In 2010, a committee was formed to find Ratan Tata's successor and eventually selected Cyrus Mistry, who took over in 2012.
After Mistry was removed in 2016, Tata Sons constituted another five-member committee headed by Ratan Tata. It included Venu Srinivasan, Amit Chandra, Ronen Sen and independent member Lord Kumar Bhattacharyya. That committee selected Chandrasekaran, who became Tata Sons chairman in February 2017.
This time, the group has a longer transition window. Chandrasekaran's current tenure runs until February 2027, giving Tata Sons several months to complete the process once the selection committee is operational.
For now, the biggest question is whether Tata Sons will ultimately choose someone from within its own ranks or look outside the group.
