Tata Sons Pvt.'s Chairman N Chandrasekaran rejected news reports that claimed the company is considering a revamp of its leadership structure.
“I would like to state that no leadership structural changes are on the anvil, as speculated in certain sections of media,” Chandrasekaran was quoted as saying in a statement. “Any such decisions if relevant, are taken by the nomination and remuneration committee. We're extremely disappointed with such stories that create disruption to regular operations.”
The holding company of India's largest conglomerate, Bloomberg reported on Tuesday citing people privy to the development, was creating a chief executive officer's role to help improve corporate governance.
The CEO would guide the sprawling businesses of the 153-year-old Tata empire, while the chairman will oversee the chief executive on behalf of shareholders, people engaged in the deliberations had told Bloomberg. Approval from Ratan Tata—the octogenarian chairman of controlling owner Tata Trusts—was being seen as key to implementing the change, they said.
Reacting to the report, shares of Tata group firms closed up to 1.63% higher on Sept. 14.
Chandrasekaran, the people cited by Bloomberg had said, is being considered for extension after his term as chairman ends in February, while the heads of various Tata group firms, including Tata Steel Ltd., are being evaluated for the CEO's post.
In a separate statement on Wednesday, Ratan Tata, former group chairman and now chairman of Tata Trusts, said he is “extremely disappointed with the recent media reports regarding a major revamp in the Tata groups organization framework through a speculative company wise restructure with me seen to be critical to implementing this change. Such speculation can only serve to cause disruption amongst a team that has been operating smoothly with impressive growth in market value.”
Tata Trusts are the majority shareholder of Tata Sons, with a 66% stake.
Read Chandrasekaran's full statement here:
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
