In a dramatic development that took the corporates and others by surprise, 42 years old Cyrus Mistry was sacked as chairman of Tata Sons on 24.10.2016. The new appointment will be four months later during which a search committee will look for a replacement. For the time being Ratan Tata will act as interim chairman. Cyrus Mistry took over the reins of the over USD 100 billion salt-to-software conglomerate.
The announcement came after the board of Tata Sons threw a meeting and finally decided to replace Mistry, who had taken over from Ratan Tata in 2011. The board named a five-member search committee including Ratan Tata to choose a successor to Mistry within four months. The other members of the board were Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharya.
Mistry was chosen as Tata’s successor in November, 2011. Cyrus was appointed Deputy Chairman of Tata Sons, whose board he had entered in 2006. He was made chairman on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons.
Little Info about Cyrus Mistry
- Cyrus Mistry is actually an Irish citizen.
- Mistry’s family had to give up their Indian citizenship and become Irish citizens in 2003, because the Indian government doesn’t approve of dual citizenship.
- His father’s name is Shapoorji Pallonji who is the largest shareholder in the Tata Group with a stake of 18.5% in Tata Sons. He was also recognized by Forbes as the “richest person of Parsi descent”.
The reason behind Cyrus dismissal was the performance issues was . An analyst who is closely working with the Tata sons for many years in the past said, “DOCOMO and TCS were major non performance issues, in addition to major concerns of managing the teams.”
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