On 24 October 2016, Cyrus Mistry was sacked as Chairman of Tata Sons and replaced by Ratan Tata, who will be the interim chairman, for four months. In Nov 2011, Cyrus (48 years) had taken over from Ratan Tata, when the latter turned 75 years. The board named a 5-member committee to choose a new successor, in four months. CEOs of the Groups operating companies have not been touched, so far. Tata Sons is the main holding company of the Tata Group. Chairman of Tata Sons, is traditionally the chairman of Tata Group. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest trusts are the Sir Dorabji Tata and Sir Ratan Tata trusts.
Who is Cyrus Mistry?
Cyrus Mistry is the son of billionaire construction magnate Pallonji Mistry and scion of Shapoorji Pallonji Group, which holds a 18.4% stake in Tata Sons. Cyrus is a graduate from the Imperial College and the London Business School. He is an Irish citizen and permanent resident of India. In 2006, he entered the board of Tata Sons, was later made Deputy Chairman and was chosen as the successor to Ratan Tata.
Were there Contrasting Leadership Styles?
In 2012, Cyrus Mistry sold TATA Steel, UK in the face of mounting losses. The TATA Docomo joint venture is also in legal battle with Japan’s Docomo. Seen in perspective, Cyrus’s style contrasts with Ratan Tata, who led the group to acquire Tetley in 2000 for US$ 450 Million, Corus Steel in 2007 for US$ 8.1 Billion and Jaguar Land Rover in 2008 for US $ 2.3 Billion. During Ratan Tata’s tenure, the Group’s revenue grew manifold from US$ 1.5Billion in 1991 to US$ 100 Billion in 2011-12.