New Delhi, October 25: In a rather unexpected move on Monday, the Tata Sons removed Cyrus Mistry as its chairman after four years as he took over the reign of over USD 100 billion empire. The decision was taken at a board meeting held in Mumbai.
Ratan Tata has been appointed as a interim chairman for four months
From the messy handling of DoCoMo deal to several recent administrative decisions, Cyrus Mistry was far away from impressing the Tata Board. Not just that, sources said that handling of a few harassment cases involving senior officials was also a reason which not only enraged the management and interim chairman Ratan Tata.
Cyrus Mistry had a different perspective and probably required more time to evolve. The officials in the company who were in his support believed that he was struggling with a rather difficult global economy.
It turns out it didn't work out in the end after all. One of the CEOs of Tata Sons mentioned that Rata Tata is a big picture man and a visionary. However, Mistry is pretty hands on for a Chairman and full of energy.
Cyrus Mistry, the youngest son of Indian billionaire construction magnate Pallonji Mistry, was Ratan Tata's first choice as he took over as Chairman of the company on December 28, 2012. He was initially the part of selection committee looking for a successor of Ratan Tata.
As Mistry entered the fifth year of his chairmanship, he was due for the routine renewal. He was perceived to be attempting to secure his position by building strong ties with the political establishments of the country.
Meanwhile, some of the GEC appointees had reportedly advised that Mistry as Chairman of Tata Sons had an opportunity to play a rather bigger role with the establishment that too at such time when the credibility of most business houses was diminishing.
It is notable that during the deliberations, as Mistry detailed how the next Chairman of Tata Sons should be like, the fellow members were so impressed by him that he was actually given the job right then.
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