Tata Sons Chairman N. Chandrasekaran to Step Down Amid Trusts Tensions
N. Chandrasekaran, chairman of Tata Sons, said on Wednesday that he will not seek reappointment when his current term ends in February, citing a lack of board backing. His decision follows months of tensions with Tata Trusts, which owns a 66% stake in Tata Sons and controls the wider Tata Group.
The disagreements have involved several key issues, including the possible listing of Tata Sons, losses at Air India, the proposed exit of a minority shareholder and board representation. Tata Sons had postponed a decision on Chandrasekaran’s reappointment in February after Tata Trusts chairman Noel Tata opposed the move. Chandrasekaran said leadership clarity was important for employees, investors and other stakeholders.
The announcement triggered declines in major Tata stocks, with TCS falling 5.1% and Tata Motors dropping 2.5%, while Tata Steel and Titan also declined. Chandrasekaran joined TCS in 1987, became its CEO in 2009 and took over as Tata Sons chairman in 2017. His departure comes as the conglomerate faces challenges including regulatory scrutiny of Air India, pressure on TCS and disruptions at Jaguar Land Rover.
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