Don't worry about leadership change: What Ratan Tata told his Group CEOs

Ratan Tata, the interim chairman of Tata Sons today held a meeting with all Tata Group CEOs and asked them to not be concerned about the sudden exit of Cyrus Mistry from the company.

He reiterated that  he had assumed the role of the Interim Chairman for stability and continuity so that there is no vacuum.

“This will be for a short time. A new permanent leadership will be in place,” he emphasised.

The stunning boardroom coup, announced late on Monday, sent shares in some of Tata's major listed entities lower on Tuesday, despite the company's attempt to calm the waters by bringing a well-known and widely respected hand like Ratan Tata back to the helm.

 Mistry was yesterday sacked as Chairman of India's largest conglomerate Tata Group. He has been replaced by his predecessor Ratan Tata in the interim, a development that can trigger a confrontation between the single-largest shareholder and the company's founding family. 

Referring to ongoing initiatives in the companies, Tata said, “We will evaluate and continue to undertake those that are required to. If there is any change, they will be discussed with you.”  
 

“The companies must focus on their market position vis-à-vis competition, and not compare themselves to their own past. The drive must be on leadership rather than to follow,” he said, addressing Managing Directors and senior leaders of Tata companies. 

He added, “I look forward to working with you as we have worked together in the past. An institution must exceed the people who lead it. I am proud of all of you, and let us continue to build the group together.” 

He asked the leadership of the companies to focus on their respective businesses, without being concerned about change in leadership. 

No decision yet on legal recourse to Mistry ouster: Shapoorji
Meanwhile, Shapoorji Pallonji today said it is studying the "circumstances" and has not yet decided on taking legal recourse.

The single largest shareholder with 18.4 per cent stake in Tata Sons - the holding company of Tata Group, Shapoorji said it will make a statement on the course of action it chooses when such a thing becomes necessary.

"Neither the SP Group nor Mr Cyrus Mistry have made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage. As and when a public statement becomes necessary, it would be made," the construction group said in an emailed statement.