India’s Tata Sons said Thursday its board had voted to reappoint N. Chandrasekaran as executive chairman for another five-year term after he rescinded his decision last month to not seek another term.
Tata Sons is the principal holding company and promoter of the Tata Group, a $180 billion conglomerate whose interests range from salt to software.
The board meeting comes a month after Chandrasekaran said he would not seek reappointment following months of friction with Tata Trusts chairman Noel Tata.
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The board’s nomination and remuneration committee asked Chandrasekaran to reconsider, Tata Sons said in a statement, citing his “contributions” to the Tata Group and its “larger interests”.
Chandrasekaran “acceded to the board’s request to re-consider his decision”, Tata Sons said.
Tata Trusts, a group of philanthropic institutions, owns 66 percent of Tata Sons. While Tata Trusts does not play a role in the day-to-day management of the conglomerate, their shareholding in the parent firm gives them decisive influence over the group’s future.
The Tata Group has grappled with a leadership crisis for about a year due to boardroom disagreements over several issues, including losses at some group firms.
Several of the group’s key businesses, such as Tata Consultancy Services, have been facing major global headwinds.
Other costly bets, including the acquisition of Air India in 2022 and the decision to invest billions into semiconductor manufacturing, have yet to pay off.
Source: Khaleej Times