the Battle of Ratan Tata and Cyrus Mistry

Cyrus Pallonji Mistry; an Irish businessman of Indian origin; was the MD (Managing Director) of Shapoorji Pallonji & Company; which is part of the Shapoorji Pallonji Group; before joining the board of Tata Sons on 1 September 2006, a year after his father retired from it. He served as a Director of Tata Elxsi Limited, from 24 September 1990 to 26 October 2009 and was a Director of Tata Power Co. Ltd until 18 September 2006.

 In mid-2012, Mistry was appointed as the Chairman of Tata Sons. In addition, he was also the Chairman of all major Tata companies including Tata Industries, Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power , Tata Teleservices, Indian Hotels, Tata Global Beverages and Tata Chemicals.
Ratan Tata (left) with Cyrus Mistry (right)

 On 24 October, 2016, the Board of Tata Sons (the Tata's holding company) voted to remove Cyrus Mistry from the post of chairman.

 Former chairman Ratan Tata was named the interim Chairman, and a selection panel has been appointed to determine a successor.

 9 possible reasons why Mr. Misrty was removed:
  1. Failed to turn around Tata Steel UK, rushed for sale. The acquisition price was $12 billion in 2007
  2. Tried to rope in his team in group companies and on its boards, changing the existing practice
  3. In combating mood with some of the executives at the group companies
  4. Aggressively pursued disposal of non-profitable businesses
  5. More keen to build new businesses--- e-commerce, defence and infrastructure--- rather than consolidating existing businesses
  6. Dividends reduced or cancelled at group companies, leading to sharholders' ire. (As the major stake holder, Tata Trusts are the largest beneficiaries of dividends through Tata Sons.)
  7. Tried to bring in group level mechanism to track performance of executives and employees at companies
  8. The emphasis on 'Profitability' applied with equal vigor on all group companies, despite the diverse nature of the businesses
  9. Marketed his three years of achievements in direct comparison to previous years of Tata
socurce: http://bit.ly/2eB4dcZ

My tweets that followed the ugly & thrilling corporate battle:






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