MUMBAI: Tata Sons on Wednesday appointed Cyrus Mistry as deputy chairman, who will take over from Ratan Tata when he retires in December 2012. Cyrus is the younger son of Pallonji Mistry, the largest individual shareholder in Tata Sons. Currently, Cyrus is the Managing Director of Shapoorji Pallonji Group. He is a graduate of civil engineering from Imperial College, London, and has a master of science in management from the London Business School.
Commenting on the announcement, Ratan Tata said that he was committed to working with Mistry over the next year.
Endorsing the appointment, Mr Tata, Chairman of Tata Sons, said: "The appointment of Mr Cyrus P Mistry as Deputy Chairman of Tata Sons is a good and far-sighted choice.
He has been on the board of Tata Sons since August 2006 and I have been impressed with the quality and calibre of his participation, his astute observations and his humility. He is intelligent and qualified to take on the responsibility being offered and I will be committed to working with him over the next year to give him the exposure, the involvement and the operating experience to equip him to undertake the full responsibility of the group on my retirement."
On his appointment Mistry said that he was looking forward to guidance from Ratan Tata over the next year. "I am deeply homoured to be appointed as Deputy Chairman, I will legally disassociate from the family business."
The selection committee unanimously recommended Mistry's name. Mistry will work with Ratan Tata for one year before he takes over as chairman. Cyrus Mistry was inducted into the Tata Sons' board in September 2006. His appointment was largely in recognition of his family's 16.5% stake in Tata Sons.
The five-member panel appointed by the Tata Sons board to find a successor to the chairman has seen its mandate evolve over time. Tata Sons had said while forming the committee to find a successor that the group would require someone with experience and exposure to direct its growth amidst the challenges of the global economy.
In May, the group said the selection committee had interviewed several candidates, both internal and external, but no final decision had been taken. Since then, the consensus within has been that the group is not yet ready for an expatriate leader.
According to sources, the panel which has had about six meetings so far in Bombay House has devised a structure within which the new boss would operate as it would be hard for an individual to fill the big shoes of Ratan Tata.
About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest of these trusts are Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which were created by the families of the sons of Jamsetji Tata.
Commenting on the announcement, Ratan Tata said that he was committed to working with Mistry over the next year.
Endorsing the appointment, Mr Tata, Chairman of Tata Sons, said: "The appointment of Mr Cyrus P Mistry as Deputy Chairman of Tata Sons is a good and far-sighted choice.
He has been on the board of Tata Sons since August 2006 and I have been impressed with the quality and calibre of his participation, his astute observations and his humility. He is intelligent and qualified to take on the responsibility being offered and I will be committed to working with him over the next year to give him the exposure, the involvement and the operating experience to equip him to undertake the full responsibility of the group on my retirement."
On his appointment Mistry said that he was looking forward to guidance from Ratan Tata over the next year. "I am deeply homoured to be appointed as Deputy Chairman, I will legally disassociate from the family business."
The selection committee unanimously recommended Mistry's name. Mistry will work with Ratan Tata for one year before he takes over as chairman. Cyrus Mistry was inducted into the Tata Sons' board in September 2006. His appointment was largely in recognition of his family's 16.5% stake in Tata Sons.
The five-member panel appointed by the Tata Sons board to find a successor to the chairman has seen its mandate evolve over time. Tata Sons had said while forming the committee to find a successor that the group would require someone with experience and exposure to direct its growth amidst the challenges of the global economy.
In May, the group said the selection committee had interviewed several candidates, both internal and external, but no final decision had been taken. Since then, the consensus within has been that the group is not yet ready for an expatriate leader.
According to sources, the panel which has had about six meetings so far in Bombay House has devised a structure within which the new boss would operate as it would be hard for an individual to fill the big shoes of Ratan Tata.
About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest of these trusts are Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which were created by the families of the sons of Jamsetji Tata.
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