Mahindra & Mahindra Ltd (M&M) executive chairman Anand Mahindra will step down from his position and become non-executive chairman next year, effective 1 April, 2020, the company announced on Friday.
M&M, in an exchange filing, said that its board has approved the transition of Anand Mahindra's role from chairman to non-executive chairman.
As per the new Sebi norms, the top 500 listed entities have to appoint a non-executive chairperson on their boards by April 1, 2020, which would eventually lead to a split in the post of chairman and managing director.
"The governance, nomination and remuneration committee (GNRC) has undertaken a structured and comprehensive succession-planning program, following which Anand Mahindra will transition to the role of non-executive chairman with effect from 1 April, 2020 and his re-designation as a non-executive chairman of the company with effect from 1 April, 2020," M&M said in a filing to stock exchanges.
Anand Mahindra took to Twitter to announce the company's leadership transition plan.
Delighted to announce our leadership transition plan which reflects the Group's commitment to good governance. I am grateful to the board & nominations committee for conducting a diligent & rigorous year-long process that will ensure a seamless transition https://t.co/iw34PPxmCg- anand mahindra (@anandmahindra) December 20, 2019
The company's managing director, Pawan Kumar Goenka, will have additional responsibilities as the new chief executive officer (CEO) for a year, from 1 April, 2020 till the end of his current term i.e. up to 11 November, 2020.
Among other management changes, Anish Shah has been appointed as chief financial officer (CFO) till April 2021. After April 2, 2021, he would replace Goenka to assume charge as the MD and CEO of the company for a four-year period. His term will end 31 March, 2025.
The board has also approved the appointment of Rajesh Jejurikar, currently President - Farm Equipment Sector, as an additional director from April 1. CP Gurnani has been appointed as an additional director from April 1, 2020. He will be Non-Executive, Non-Independent Director.
Meanwhile, VS Parthasarathy is going to step down as CFO of the company with effect from 1 April, 2020, on account of his transition to a new role.
Follwing the announcement, shares of Mahindra & Mahindra was trading at Rs 533.60, down 0.27 per cent, on the Bombay Stock Exchange.
Edited by Chitranjan Kumar