Tata Group reduces retirement age from 75 to 70 for Non-executive directors

MUMBAI: The $72-billion Tata Group has lowered the retirement age of non-executive directors on the boards of all Tata Group companies to 70 from the current 75, a move that would reduce the tenures of several top executives in the Tata Group. The change came about after the board of Tata Sons, the group holding company, accepted a recommendation from a panel set up to choose a successor to Ratan Tata, chairman of the conglomerate.

Top guns like former Tata Steel MD B Muthuraman, erstwhile Tata Motors MD Ravi Kant, and former TCS boss S Ramadorai who had relinquished executive positions at the age of 65 will have to step down from directorships around four years from now. Other non-executive directors on holding company Tata Sons' board like Arun Kumar Gandhi and Farrokh Kavarana will also have their stint cut down.

Non-executive directors who have already crossed 70 will stay on till they retire at 75 - in line with the old rule that was laid down in 2005. That means RK Krishnakumar (72) will continue on the board of Tata Sons and other group companies. JJ Irani who turns 75 this year will step down in 2011. Sources say that the reason for allowing executives over 70 to continue is to ensure that there is a smooth transition.