New Delhi [India], August 12 : Tata Sons Chairman N Chandrasekaran's decision not to seek a second term reflects his integrity and provides the Tata Group with adequate time to ensure a smooth leadership transition, said Association of National Exchanges Members of India (ANMI) President Kamlesh Shroff.
Shroff said Chandrasekaran's nearly four decades of contribution to the Tata Group and its companies demonstrated the amount of hard work he had put into the organisation, adding that his decision to step down after completing his tenure was a normal course of events.
"I think that after doing four decades of work at the company, it's not something he has himself, so it is as per course that he had decided to exit this," Shroff said.
N Chandrasekaran decided not to offer himself for reappointment when his current term ends on February 20, 2027, after the company's Board failed to reach a consensus on extending his tenure.In a statement issued on Wednesday, Chandrasekaran said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended extending his next term by five years. The proposal was subsequently recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board.
Kamlesh Shroff said Chandrasekaran's decision should not necessarily be interpreted as a fallout of the reported lack of unanimous support within the board for his renewal.
"I don't think so because the original plan was for him to resign. This is only for a small period of renewal for the five years. So having understood that, he had decided this is a pre-decided decision of his," Shroff said.
Shroff said the fact that Chandrasekaran chose to step down rather than pursue a renewal in the absence of unanimous support demonstrated his credibility and integrity.
"The good part is that just because of one member, if he stepped down, that shows a lot of credibility and integrity of a person in the industry," he said.
On the search for Chandrasekaran's successor, Shroff said it would be difficult to speculate on who could take over as chairman of Tata Sons, adding that the group was expected to follow a due process to identify the right candidate.
"Very difficult to judge, and not easy to comment either," he said, adding that he had not come across any major names who were currently expected to be part of the succession process.
Shroff also welcomed Chandrasekaran's decision to complete his entire tenure and give the board sufficient time to manage the transition.
He said Chandrasekaran's commitment to remain in office through the end of his tenure would help ensure that the succession process proceeds smoothly.
"I think that's an excellent way of looking forward. So he's going to give time for the succession to be proceeded ahead smoothly, which is a great mark of a leader," Shroff said.
He added that Chandrasekaran's willingness to handhold the organisation during the transition was a leadership quality that deserved acknowledgement.