Cyrus Mistry, current chairman of Tata Sons, is not leaving on a bad note. In fact, he was apprised of the situation a while ago.
According to sources close to the development, Cyrus Mistry was not equipped to handle a gigantic group of the size of Tatas.
Mistry was elevated to the top job not only because he was capable but also because Shapoorji Pallonji Mistry is the largest shareholder of the Group. Presently, Shapoorji Pallonji Mistry owns 18.4 percent stake in Tata Sons. However, Mistry was a micromanager and that did not help the group of the size of Tatas.
There are also conflicting reports on Mistry's exit from Tata Sons. Some analysts, who spoke on condition of anonymity, said that Mistry was a `chilled out person'. Also, he did not have the rapport.
The source told Firstpost that when any major development was underway in any of the Tata Companies, Mistry focussed on that to the exclusion of the other companies in the group. He would also not let the leaders of the other Tata companies make decisions on their own.
The managers, most of them appointed by Ratan Tata, were used to the earlier functioning of the Group and with quick redressal of issues. This delay in communication and micro management by Mistry also reflected in the company’s balance sheets, the source said.
“Ratan Tata is a visionary and he has elevated senior people to the level of Managing Directors of various groups simply because he was able to see they were competent and could do the job. Once he gave them the job, he did not interfere. He empowered his men,” said the source. For instance, Koushik Chatterjee was given free rein to handle the Corus Steel deal.
Ratan Tata’s return to the Board may not be temporary, the source said. The Board and the managers of the Tata companies would like him to stay. Tata has created this behemoth and is a nimble footed person. He is approachable and has in depth expertise. So he may stay around for a longer while, the source said, adding that that is the current mood of the managers of the Tata group companies too.
Published Date: Oct 24, 2016 07:17 pm | Updated Date: Oct 24, 2016 07:37 pm