Tata's succession planning on test
Bengluru/Mumbai, Aug. 13 -- Tata Sons chairman N. Chandrasekaran's exit note on Wednesday has put the spotlight on the group's lack of succession planning, an issue that Tata Trusts chairman Noel Tata had highlighted to the Tata Sons board at least twice in past 19 months.
Chandrasekaran, who took over as Tata Sons chairman in February 2017, wrote to the Tata Group holding company's six-member board that he will not offer himself for reappointment when his term ends next February. Noel Tata, who took over as the chair of the philanthropic entities that control 65.9% of Tata Sons in October 2024 after the demise of his half-brother Ratan Tata, had first enquired about succession planning with Harish Manwani, the chairman of Tata Sons' three-member nomination and remuneration committee (NRC), in January last year.
Manwani "responded positively" to Noel Tata, acknowledging that the committee would look into it, according to two executives privy to the development. In February, Noel Tata again asked the NRC chair whether the group had made any progress on succession planning. There was no clear answer offered by Manwani, according to one executive.
An email sent to Manwani seeking response went unanswered. An email sent to Noel Tata and Tata Trusts also elicited no response. Tata Sons NRC comprises Manwani, Chandrasekaran and Tata Trusts nominee Venu Srinivasan.
As early as July 2025, the two principal entities of Tata Trusts-Sir Ratan Tata Trust and Sir Dorabji Tata Trust -had approved a third term for Chandrasekaran. The trustees even agreed to relax the retirement-age criterion for Chandrasekaran, allowing him to continue as executive chairman beyond his 65th birthday. Chandrasekaran turned 63 in June.
However, Noel Tata's decision to step down from the Tata Group companies board by November, when he turns 70, the mandatory retirement age for non-executive directors, puts the onus on the six-member board to start the succession planning, said an executive privy to the development....
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