 "Ratan Tata leaving the Tata group's head office Bombay House in Mumbai")
An independent director of Tata Sons, for the first time since the ouster of Cyrus Mistry as chairman of the group’s holding company, broke his silence over the controversy. Ronen Sen lashed out at Mistry for leaking selective information to media.
“I have not and will not comment on the veracity or otherwise of confidential and internal documents being leaked in a selective and motivated manner by ‘sources close to the former chairman’, contrary to norms governing privileged information. I leave it to you to arrive at your own conclusions on whether these orchestrated leaks, unless denounced by him, will enhance or further diminish the confidence of his fellow directors on the board of Tata Sons,” said Sen.
Sen said this in response to media reports pointing out that the nomination and remuneration committee of the Tata Sons Board lauded the erstwhile chairman for his performance and also recommended a substantial salary increase, four months before asking him to step down. Sen was chairman of the said committee along with Vijay Singh, the nominee director representing Tata Trusts, and Farida Khambata, an independent director.
“I will also not stoop to the level of the unidentified ‘person close to the former chairman’ who has implicitly questioned my integrity and explicitly alleged that I, and another respected colleague on the board, of ‘clearly having failed to apply their mind independently and discharge their fiduciary duty’ by dignifying the charge with a response,” said Sen.
He, however, indicated that there could have been developments between June 28, the day nomination and remuneration committee met after reviewing Mistry’s performance, and October 24, when Mistry was sacked as the chairman of Tata Sons. “The implied assumption that there were no developments between the meeting of the nomination and remuneration committee and the board meeting on 24 October is also naive to put it mildly,” said Sen.
Sen is a former civil servant, who has been India’s ambassador to the United States (2004 to 2009), Germany (1998-2002), Russia (1992-98) and Mexico (1991-92). Defending himself, Sen said he has enjoyed confidence of eight successive prime ministers because of his independence of assessments affecting national interests. “Insinuations that I acted differently in the board room of an iconic company with a great legacy appears to reflect a mindset that measures others by their own self-centred priorities and perceptions.”
Sen also clarified that his comments were solely in his personal capacity and that he was not speaking on behalf of Tata Sons or fellow board members.
“I have not and will not comment on the veracity or otherwise of confidential and internal documents being leaked in a selective and motivated manner by ‘sources close to the former chairman’, contrary to norms governing privileged information. I leave it to you to arrive at your own conclusions on whether these orchestrated leaks, unless denounced by him, will enhance or further diminish the confidence of his fellow directors on the board of Tata Sons,” said Sen.
Sen said this in response to media reports pointing out that the nomination and remuneration committee of the Tata Sons Board lauded the erstwhile chairman for his performance and also recommended a substantial salary increase, four months before asking him to step down. Sen was chairman of the said committee along with Vijay Singh, the nominee director representing Tata Trusts, and Farida Khambata, an independent director.
“I will also not stoop to the level of the unidentified ‘person close to the former chairman’ who has implicitly questioned my integrity and explicitly alleged that I, and another respected colleague on the board, of ‘clearly having failed to apply their mind independently and discharge their fiduciary duty’ by dignifying the charge with a response,” said Sen.
He, however, indicated that there could have been developments between June 28, the day nomination and remuneration committee met after reviewing Mistry’s performance, and October 24, when Mistry was sacked as the chairman of Tata Sons. “The implied assumption that there were no developments between the meeting of the nomination and remuneration committee and the board meeting on 24 October is also naive to put it mildly,” said Sen.
Sen is a former civil servant, who has been India’s ambassador to the United States (2004 to 2009), Germany (1998-2002), Russia (1992-98) and Mexico (1991-92). Defending himself, Sen said he has enjoyed confidence of eight successive prime ministers because of his independence of assessments affecting national interests. “Insinuations that I acted differently in the board room of an iconic company with a great legacy appears to reflect a mindset that measures others by their own self-centred priorities and perceptions.”
Sen also clarified that his comments were solely in his personal capacity and that he was not speaking on behalf of Tata Sons or fellow board members.
