Tata Sons chairman N Chandrasekaran steps down, to serve out term till February
NEW DELHI: Tata Sons Chairman N Chandrasekaran resigned from his post on Wednesday. He will continue in his current term, which is due to end in February.The development comes months after Tata Sons delayed a decision on his reappointment amid differences with Tata Trusts chairman Noel Tata over the group’s future governance.Tata Sons controls more than 30 companies in the conglomerate, including Tata Consultancy Services (TCS), Tata Motors and Air India. Tata Trusts, the group’s charitable arm, owns a 66% stake in Tata Sons.Chandrasekaran confirmed the decision in a statement, saying he had communicated to the Tata Sons board that he would not offer himself for another term and had asked the board to begin the succession process soon to ensure a smooth transition.Also read – N Chandrasekaran’s statement on stepping down as Tata Sons chairman: Full text“I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution. Leading Tata Sons over the past decade has been a great honour and a profound responsibility.“My current tenure as the Chairman of Tata Sons comes to an end on Feb 20, 2027. Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of my next term for a period of five years, which was recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board. Subsequently, the resolution was tabled in the Tata Sons Board on Feb 24, 2026. However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision.”Also read: Tata group stocks fall up to 4% as N Chandrasekaran steps down as chairmanChandrasekaran said six months had passed since that board meeting without a resolution being reached.“It has been 6 months since that Board meeting, and no resolution has been reached till date. Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution. It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders.”He added: “Under these circumstances, earlier today, I have communicated to the Tata Sons Board, that I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027. I have asked the Board to decide on the succession soon to ensure a proper transition.”“I am grateful for the support of all stakeholders,” he said.In February, Tata Sons postponed a decision on extending Chandrasekaran’s tenure after Noel Tata opposed the move. According to a source, Noel sought several conditions, including a commitment that Tata Sons would never be listed. Chandrasekaran was unwilling to give that commitment.Chandrasekaran joined the Tata Group in 1987 and became CEO of TCS in 2009 before taking over as Tata Sons chairman in 2017.Over the past year, the Tata conglomerate has faced regulatory scrutiny of Air India following a fatal crash, pricing pressure at TCS and a cyberattack on Jaguar Land Rover that disrupted production and weighed on Britain’s economic output.Differences between Tata Sons and Tata Trusts have surfaced in the past, most notably in 2016 when Tata Sons’ board removed then-chairman Cyrus Mistry following a fallout with Ratan Tata.
