Tata Sons is the holding entity of 153-year-old Tata business empire
For the first time since its existence, Tata Sons Ltd, the holding entity of $106 billion salt-to-software conglomerate Tata group, is considering to create a position of chief executive officer (CEO) as part of a leadership structure revamp, a report said on September 14.
While the company is yet to issue an official statement, sources privy to the development told Bloomberg that the proposal is under consideration.
As per the plan that is being deliberated, the CEO will be in charge of guiding the various businesses of Tata group, whereas, the chairman will oversee the chief executive's functioning on behalf of the shareholders, the report claimed citing the people familiar with the development.
The sources, who were not identified as the talks remain private, also noted that the approval of Ratan Tata, the 83-year-old chairman of controlling owner Tata Trusts, is considered to be the key in implementing the proposed changes.
The company, they claimed, is considering the heads of various Tata group entities, including the chief of Tata Steel Ltd, for the proposed position of CEO of Tata Sons.
The tenure of Tata Sons current chairman Natarajan Chandrasekaran is being considered to be extended beyond February 2022, the sources were further reported as saying.
They, however, added that no final decision has been taken, and the plan that is under consideration could be changed.
The report comes months after Ratan Tata, the former chairman of Tata Sons who led the controlling entity from 1991 to 2012, won a legal battle against Cyrus P Mistry who had alleged mismanagement by the group following his ouster as the company's chairman in 2016.
Although Tata Sons is not a listed entity, the proposed leadership structure rejig - if implemented in a time-bound manner - will be in line with the Sebi's recommendation that the country's top 500 listed companies should split the role of CEO and chairman by April 2022.