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9 possible reasons behind the removal of Cyrus Mistry

In an unexpected turn of events at Tata Group, the less-than-four-years-old Chairman of over $100-billion salt-to-software conglomerate, Cyrus Mistry, was sacked from the top post. Here are some of the reasons rumoured to be behind Mistry's sacking.

twitter-logo Nevin John        Last Updated: October 27, 2016  | 16:34 IST
9 possible reasons behind the removal of Cyrus Mistry
Former Tata Sons Chairman Cyrus Mistry

In an unexpected turn of events at Tata Group, the less-than-four-years-old Chairman of over $100-billion salt-to-software conglomerate, Cyrus Mistry, was sacked from the top post. Here are some of the reasons rumoured to be behind Mistry's sacking.

ALSO READ: Cyrus Mistry's Exit: A Look at His Life at the Helm of Tata Group


  1. Failed to turn around Tata Steel UK, rushed for sale. The acquisition price was $12 billion in 2007
  2. Tried to rope in his team in group companies and on its boards, changing the existing practice
  3. In combating mood with some of the executives at the group companies
  4. Aggressively pursued disposal of non-profitable businesses
  5. More keen to build new businesses--- e-commerce, defence and infrastructure--- rather than consolidating existing businesses
  6. Dividends reduced or cancelled at group companies, leading to sharholders' ire. (As the major stake holder, Tata Trusts are the largest beneficiaries of dividends through Tata Sons.)
  7. Tried to bring in group level mechanism to track performance of executives and employees at companies
  8. The emphasis on 'Profitability' applied with equal vigor on all group companies, despite the diverse nature of the businesses
  9. Marketed his three years of achievements in direct comparison to previous years of Tata

ALSO READ: Coup at Bombay House: Cyrus Mistry removed as Tata Sons chairman, Ratan Tata takes seat





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