Tata Sons NRC may ask chairman Chandrasekaran to reconsider decision to leave

Mumbai: The nomination and remuneration committee (NRC) of the board of Tata Sons will oppose chairman N Chandrasekaran's decision not to seek reappointment when his current term ends in February 2027, and ask him to reconsider the move. That could set the stage for a clash between the key committee with Tata Sons' majority shareholder Tata Trusts, which had issued a statement accepting Chandra's decision. The matter will come up at the board meeting due September 17.

The decision gains significance in the wake of the Reserve Bank of India's directive to Tata Sons to list immediately after rejecting the company's request to surrender its NBFC licence, after a regulatory silence that stretched for more than two years.

The NRC of Tata Sons comprises Harish Manwani, Anita Marangoly George and Venu Srinivasan.


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Top officials close to the matter said the emerging view is that with a listing on the horizon, it's become more imperative for Chandra to stay on as chairman to ensure stability and continuity across the group during a time of transition to the public era.

The NRC of a board is responsible for the selection and remuneration of directors and key personnel.

Challenges Ahead

The board acts on the recommendations of the committee, which is a subset of the full board.

As the group navigates the regulatory and capital-markets shift, a change of leadership at the helm would prove doubly challenging, said one official. While Chandrasekaran has indicated that he does not intend to seek another term beyond February 2027, the prospect of a listing could strengthen the argument for retaining him for a defined period.

His institutional knowledge and experience in steering the group would make a compelling case as Tata Sons prepares to operate under greater scrutiny as a listed entity.

If Chandra were to reconsider his decision, it would need the support of Tata Trusts as he would need to be reappointed as director at an annual general body meeting, which is currently in abeyance as key shareholder Sir Ratan Tata Trust has been suspended by the Maharashtra Charity Commissioner from making important decisions, pending an inquiry into whether the trust is in violation of norms.