Tata group dispute: Panel sought 5-year term for Chandrasekaran early September

The timeline outlined by Tata Sons shows that the move to retain Chandrasekaran predated RBI's Sept 11 directive

MUMBAI: About three weeks after N Chandrasekaran announced that he would not seek reappointment, Tata Sons' nomination and remuneration committee (NRC) unanimously urged him to reconsider and recommended a fresh five-year term for him.The timeline outlined by Tata Sons shows that the move to retain Chandrasekaran predated RBI's Sept 11 directive requiring the company to comply with upper-layer NBFC regulations, including mandatory listing requirements. The sequence is significant because it had been widely speculated that Chandra would be asked by the NRC to stay on to steer Tata Sons through a potential

IPO process

.The NRC, which oversees succession planning, board appointments and compensation for directors and senior executives, comprises independent directors Harish Manwani and Anita George and Tata Trusts vice chairman Venu Srinivasan.

The committee met on Sept 3 to consider Chandrasekaran's Aug 12 letter in which he said he would not offer himself for reappointment at the end of his current tenure.According to Tata Sons, the committee concluded that retaining Chandrasekaran was in the "larger interests" of the Tata group and unanimously recommended his reappointment. The proposal was placed before the full board, which includes Chandrasekaran, Tata Trusts chairman Noel Tata and chief financial officer Saurabh Agrawal, on Sept 17.Chandra will remain at the helm until 2032 if the reappointment for a third term is ratified by shareholders.