Tata Sons Chairman Natarajan Chandrasekaran has announced his resignation from the post. However, he will continue in his current tenure till February 2027. Chandrasekaran has made it clear that after the end of his tenure, he will not put forward his name to become the chairman again. The main reason for his decision is the lack of consensus on the proposal to extend the tenure in the board.
N Chandrasekaran said that Tata Trusts and related committees of the company had recommended extending his tenure by five years but in the Tata Sons board meeting on February 24, 2026, a member did not support the proposal. After no consensus was reached, they postponed the decision. Even after about six months, no final decision was taken on this, after which Chandrasekaran decided to leave.
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There was no consensus in the board
According to Chandrasekaran, Sir Dorabji Tata Trust and Sir Ratan Tata Trust had recommended extension of his next term by five years. The Nomination and Remuneration Committee and Board of Tata Sons had also put forward this proposal. The proposal could not be passed in the board meeting due to one member not supporting it.
N Chandrasekaran said in his statement that many important projects of Tata Sons are currently going on. In such a situation, it is important for employees, investors and other stakeholders to know who will take over the leadership of the company after February 2027. He has asked the board to appoint a successor soon so that the change of leadership can happen smoothly.
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N Chandrasekaran has a relationship with Tata Group for nearly four decades. He started his career as an intern in TCS in 1987. In 2009, he became the CEO of TCS and in 2016, he was appointed to the board of Tata Sons. Took over the responsibility of Chairman of Tata Sons in January 2017. He said that it has been an honor and a great responsibility for him to lead Tata Sons.
There were also reports of differences with Tata Trusts
Differences had also come to light between Tata Sons and Tata Trusts regarding the tenure of N Chandrasekaran. There have been disagreements between the two sides on issues like representation in the board, group strategy and Shapoorji Pallonji Group's stake. There were also reports of Tata Trusts Chairman Noel Tata not supporting Chandrasekaran's reappointment proposal.
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After Chandrasekaran's announcement, shares of many Tata Group companies fell. TCS was down around 3.9%, Tata Motors 2.47%, Tata Steel 1.83% and Tata Power 1.26%. That is, the controversy that started with the refusal of a board member has now reached the search for the next leadership of the Tata Group.