Tata Trusts will initiate the search for the next chairman of Tata Sons after N Chandrasekaran decided against seeking another term when his current tenure ends on February 20, 2027.
The Sir Dorabji Tata Trust (SDTT) said its trustees had passed a resolution to constitute a Selection Committee and begin the succession process at the earliest, in accordance with the Articles of Association of Tata Sons.
The move came a day after Chandrasekaran informed the Tata Sons board that he would not offer himself for reappointment.
The Trust acknowledged Chandrasekaran’s decision and praised his leadership of Tata Sons and the wider Tata Group over nearly a decade. It also said it would support the company in ensuring a smooth and timely transfer of leadership while protecting the group’s long-term interests and values.
Leadership decision follows months of uncertainty
Chandrasekaran’s decision follows prolonged uncertainty over his continuation as chairman. At a Tata Sons board meeting on February 24, his proposed next term did not receive unanimous backing, prompting him to defer the matter.
In his communication to the board, Chandrasekaran said six months had passed without a resolution being reached. He also highlighted the importance of having clarity over leadership as several strategic initiatives across Tata Sons were at crucial stages.
The succession exercise comes ahead of Tata Sons’ annual general meeting scheduled for August 18, where shareholders were expected to consider his continuation as a director following retirement by rotation.
Tata Trusts, which owns around 66% of Tata Sons, had supported a five-year extension of Chandrasekaran’s executive chairmanship in 2025. However, the proposal subsequently faced reservations, including concerns regarding the performance of certain Tata Group companies.
Chandrasekaran joined the Tata Group in 1987 and later headed Tata Consultancy Services before becoming Tata Sons chairman in 2017.
