Mistry re-designated as non-executive director on Tata Sons

Monday's filing to RoC put him under 'professional' category; he now remains on board, but won't enjoy executive powers

Outgoing chairman of Tata group Cyrus Mistry continues on the board of Tata Sons, but has been re-designated as 'non-executive director'.

A non-executive director is a member of a company's board who is not part of the executive team. Such a director typically does not engage in the day-to-day management of the organisation, but is involved in policy making and planning exercises.

In a filing to the Registrar of Companies on Monday, Tata Sons communicated the change in designation. Interestingly, the filing declared his category as 'professional'.

This categorisation was despite the fact that two Mistry family-owned entities, Sterling Investment Corp and Cyrus Investments, hold 18.38 per cent stake in Tata Sons.

Till Monday, Mistry was designated as Executive Chairman of the company. For the year ended March 2016, he drew a total remuneration of Rs 17.6 crore from Tata Sons. This included a gross salary of Rs 5.67 crore and a commission of Rs 11 crore.

The non-executive directors of Tata Sons drew a remuneration of between Rs 1.3 crore and Rs 1.5 crore.