In a surprising development, happened yesterday, which shocked the corporates and other, the chief of Tata Sons, Cyrus Mistry has been removed as the head of Tata Sons by the Board of Tata Sons. Mistry’s predecessor, Ratan Tata has now been appointed as an interim chairman of the company, worth $100 billion, for four months.
In a statement released by Tata Sons, said, “Yata Sons today announced its board has replaced Mr Cyrus P Mistry as Chairman of Tata Sons. The decision was taken at a board meeting held here today.”
After the removal of Mistry, board has also formed a five-member search committee, which includes Ratan Tata, to hunt for the successor of Mistry within four months.
The selection committee includes, Ratan Tata, TVS Group head Venu Srinivasan, Bain Capital’s Amit Chnadra, former diplomat Ronen Sen and Lord Kumar Bhattacharya. Except Bhattacharya, all are on the board as well.
Mistry,48, was elected as Ratan Tata’s successor in November 2011 and was appointed as the Deputy Chairman of Tata Sons. He had entered the Board in 2006. He was appointed as the chairman on the basis of representation from Shapoorji Palonji, the largest shreholder in Tata Sons.
According to the reports, Mistry was removed as the chairman due to his approach of shedding non-profit businesses, including conglomerate’s steel business in Europe and focusing only on cash cows.