Since the foundation of the company in 1868, Tata has seensix Chairmen. The removal of Cyrus Mistry just after four years after hisappointment has made him the shortest reigning Chairman of the company.
Though Ratan Tata has taken the position as the interimchairman, the company is aiming to appoint a new chairman within four months.
Here are the factors that influence the selection of a newchairman:
A special committee
During the selection of Cyrus Mistry, a special committeewas appointed with the task of appointing a new chairman. The impact of thecommittee on the final decision is still debatable but this time around thecommittee might feature top executives associated with the brand Tata. So far, reportshave suggested that the selection committee might involve similar names as lasttime.
Out of the six chairmen of Tata Sons, four have been fromthe Tata family. The chances of the new member being from the family are prettyhigh. The only two chairmen out of the family have had short tenures as the topexecutive. Nowroji Saklatwala was the chairman from 1932 to 1938 and Mistrylasted for just four years, from 2012 to 2016.
International achievers of Indian origin
A few reports suggest that the company might also look atcandidates from the international business community. Someone who has achieveda lot and at the same time has an Indian connect. Indra Nooyi, is one of themost strongest candidates who satisfies this criteria and also enjoys immenseappreciation for her work from Ratan Tata himself.
During the previous selection process in the year 2012, a special search committee was in place toselect the new chairman. It ended when the majority stake holder just decidedto appoint the new chairman according to their own discretion. Hence despitethe elaborate selection procedure, the majority stakeholder always has theright to nominate a member.
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