Tata Group Breaks Tradition: N Chandrasekaran Secures Historic Third Term as Chairman

Image Source: Times Of India

In a landmark move, Tata Trusts has approved a third five-year executive term for N Chandrasekaran as Chairman of Tata Sons, overriding the group’s age-based retirement policy. His leadership continuity is seen as vital for steering key projects like semiconductors, EV batteries, and Air India’s transformation through 2032.

Leadership Beyond Limits: Tata Group Extends Chandrasekaran’s Tenure Amid Strategic Push

In a historic departure from its long-standing retirement norms, the Tata Group has granted N Chandrasekaran a third consecutive five-year term as Chairman of Tata Sons, the holding company of the conglomerate. This decision, approved by Tata Trusts, underscores the group’s confidence in his leadership and its commitment to continuity during a transformative phase.

Key Highlights from the Announcement:

Retirement Policy Overridden

Traditionally, Tata Group executives retire from executive roles at age 65, though they may continue in non-executive capacities until 70.

Chandrasekaran’s second term ends in February 2027, when he turns 65. The extension allows him to serve until 2032, marking a first-of-its-kind exception.

Strategic Continuity Cited

Tata Trusts emphasized the need for executive leadership continuity to oversee critical initiatives including:

Semiconductor manufacturing

Battery production for electric vehicles

Air India’s restructuring and growth

Proposal Backed by Key Leaders

The idea for a third term was proposed during the Tata Trusts meeting on September 11, led by Noel Tata and Venu Srinivasan, reflecting broad internal support.

Chandrasekaran’s Journey

He joined the Tata Sons board in October 2016 and became Chairman in January 2017.

Previously, he spent 30 years at Tata Consultancy Services (TCS), serving as CEO and MD for eight years, where he drove global expansion and digital transformation.

Governance Implications

The move comes amid internal governance discussions within Tata Trusts, signaling a shift toward performance-based leadership extensions over rigid age limits.

Industry Reaction

Analysts view the extension as a vote of confidence in Chandrasekaran’s ability to navigate complex business challenges and global competition.

This unprecedented decision reflects the Tata Group’s evolving leadership philosophy—prioritizing strategic vision and execution over age-based tenure limits.

Sources: MSN India, Business Standard, LiveMint

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