BREAKING NEWS

Advertisement

Business

Updated on: Wednesday, September 15, 2021, 04:35 PM IST

Teji Mandi Explains: Tata Sons considers leadership structure change

Teji Mandi Explains: Tata Sons considers leadership structure change | File Image

Teji Mandi Explains: Tata Sons considers leadership structure change | File Image

Advertisement

It’s quite rare to hear of huge conglomerates not having a top executive position. Tata Sons is the holding company of India's largest business conglomerate. It has no operations directly under it and remains to be unlisted too. The media is buzzing with reports of Tata Sons considering creating a CEO post.

What’s the Media Buzz?

Media reports suggest that Tata Sons plans to revamp the leadership structure to improve corporate governance. Bloomberg reported the CEO will guide the Tata Sons’ businesses while the chairman will supervise the CEO on behalf of the shareholders. Ratan Tata, Chairman of Tata Trusts, will play the key role in the leadership structure revamp.

Considerations for the CEO Position

According to the reports, the top management hasn’t arrived at any decision yet. N Chandrasekaran, the current chairman of Tata Sons, is being considered for a new term. For the CEO position, heads of various Tata Group subsidiaries are being considered. Since there’s no official statement released from Tata Sons so far, the details floating in the media reports remains a ‘hard guess’.

CEO’s Responsibilities

Tata Sons remains an unconventional conglomerate, and the responsibilities on the shoulders of the CEO will remain extremely challenging. Tata Group has a presence in sectors like steel, cars, tea, IT, insurance, packaged salt, trucks etc. With so many varied businesses, the CEO’s job will be demanding. Tata Steel is looking to cut its net debt of $10 million while Tata Motors has been making losses consecutively for three years. TCS is planning to launch an all-in-one e-commerce super app.

Tata Group Stocks Gain

With 100-odd businesses and more than two dozen listed firms, investors believe that a separate chairman and a CEO is good for corporate governance. The proposed leadership revamp is also in line with SEBI’s recommendation that India’s top 500 listed companies should have separate positions of CEO and Chairman. Another valid point - there’s no clarity on who will succeed Tata Trusts. A CEO, if appointed, will have enough time to learn from Ratan Tata himself.

Future Ahead

A top executive managing and overlooking all the subsidiaries will also get Ratan Tata to the spotlight. He is a legendary figure in the Tata business who has shaped the entire group. It’s a no brainer that a CEO will learn immensely from the tycoon. Perhaps a CEO overlooking all the businesses remains a good decision. However, there’s no official statement released by the group on the same. Until then, all the media reports remain uncertain.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Wednesday, September 15, 2021, 04:35 PM IST
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement