Ratan Tata’s choice of next CEO deconstructed

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Ratan Tata’s choice of next CEO deconstructed
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Tata’s appointing of CEOs has been quite different from other companies in India. So the business experts of the country are curious to know who would fill the gap after Mistry’s exit from Tata Sons.

Going by the record, Tata has often appointed outsiders and even foreigners to head its concerns. RK Krishna Kumar moved from Tata Tea to Indian Hotels in 1997. Homi Khusrokhan, who came from Glaxo, first headed Tata Tea and then moved to Tata Chemicals. Firdose Vandrevala, a Tata Steel deputy MD was moved to head Tata Power and was also chairman of the board for Tata Teleservices. Among the current leadership at Tatas, N Srinath who heads Tata Teleservices, headed Tata Communications in the past. Anil Sardana, current MD of Tata Power, headed Tata Teleservices before Srinath.

There have been instances when the CEOs were removed midterm, much like Mistry. Bickson was replaced mid-tenure and Rosling left unexpectedly, and so was the case of Green and Vandrevala.

However, Ratan Tata always preferred CEOs to have prior experience of heading companies or businesses and opted to move up CEOs from smaller companies to larger ones.

While appointing Ratan Tata’s successor both the search committee and Tata himself chose Mistry amongst 6 other internal candidates. It was then told that Tata himself would mentor Mistry for a year. While the hunt for perfect candidate is still on, it’s kind of a déjà vu for Tata Sons. With hardly any time left to train new CEOs, Tata may be considering another paratrooper.