The Tata Group is revered in India and the corporate world and is noted for following best corporate practices. One finds it hard to believe that Tata Sons could take the decision to abruptly remove its chairman, Cyrus Mistry. The group is facing a lot of issues, most of which could be inherited or on account of adverse global economic conditions. Therefore, attributing it to leadership is debatable (“Tata Sons sacks Cyrus Mistry”, Oct.25).
A. Mohan,Chennai
Even though the corporate world runs on the “perform or perish” mantra, one finds it shocking that one of the largest conglomerates in the world that claims to follow best business practices can abruptly remove its topmost executive.
R. Badri Narayanan,Bengaluru
A leading software company changed its CEO hours before its Q2 earnings was released. Now, Tata Sons drops its four-year-old CEO like a hot potato and without credible reason. It is disappointing that India Inc. has still to fine tune the basics of corporate governance. In addition to this, there is a lack of transparency, without which there cannot be empowerment for minority shareholders.
Mohamed Anwar Sadat,Chennai
If the appointment of Cyrus Mistry, in 2012, as Chairman, Tata Sons, took many by surprise, his replacement from the high office on Monday is another surprise. The Tata Group has never been known to be ruthless and not known to drop employees or companies “unceremoniously”. The decision has sparked off speculation and rumours. With the passage of time, the details surrounding this monumental change should become clearer. But the swift manner in which it has been implemented will undermine the stability of the brand.
Lakshminarayanan,Chennai
The dramatic move to end Cyrus Mistry’s innings and make Ratan Tata pad up again as interim chief has stunned the corporate world. Mr. Tata now joins businessmen such as N.R. Narayana Murthy, Michael Dell, Steve Jobs and Howard Schultz who returned to their companies after passing on the baton. The move is certain to spark a bitter battle within one of India’s oldest business families and take some gloss off the Tatas.
N.J. Ravi Chander,Bengaluru
Mr. Mistry was stepping into the big shoes of Ratan Tata, and there is no doubt that achieving success in the tough global economic environment would have been difficult. There may have been some serious reason for the decision as Mr. Tata is known for his integrity, ethics and performance. How the Tata Group will now survive remains to be seen as the global economy does not seem to be recovering any time soon.
Bal Govind,Noida, Uttar Pradesh
Mr. Mistry’s exit is yet another example of how Indian businesses function more like feudal fiefdoms than professionally-run organisations. His unceremonious exit is clear from the terse release about the sacking of a professional who was appointed after a 14-month process and where every trace of him has been erased from the group’s website. One agrees with the statement of a corporate watcher that “even 25 years into economic liberalisation and embracing of a market economy, Indian corporates still continue to behave as if they are in the pre-liberalisation era. Professionalism is yet to be the way of governance for many of them”. Perhaps the old guard within Tata Sons didn’t like his sweeping changes that were affecting the ‘family jewels’. If this is the case, then it goes against all norms of corporate governance and management.
Rachel Abraham,Singapore
