Anand Mahindra to step down as Executive Chairman next year

Mahindra & Mahindra on Friday announced that Anand Mahindra will transition to the role of Non-Executive Chairman of the Board of Mahindra & Mahindra Ltd from April 1, 2020 onwards. 

M&M said in a release that this will further enhance the independence of the Board. 

It also informed that Pawan Goenka will be re-designated as Managing Director and CEO with effect from April 1, 2020. There will be no change in any reporting relationships as a result of this re-designation. He will retire on April 1, 2021. Goenka will continue to retain direct responsibility of Ssangyong Motors as Chairman of its Board until his retirement date, it said.

As Non-Executive Chairman, Mahindra will serve as a mentor and sounding board for the Managing Director on issues to be presented to the Board, especially in the areas of strategic planning, risk mitigation and external interface, it said.

“In addition, he will be available to provide feedback and counsel to the Managing Director on key issues facing the enterprise,” it added. 

Over the next fifteen months, a number of key leaders at M&M will be retiring, the company explained. In light of this, the Governance, Nomination & Remuneration Committee (GNRC) of the Board has completed a structured review of top management succession over the past one year, which has resulted in other changes as well. 

“This plan reflects M&M’s depth of management talent and will ensure continuity in terms of culture, values, governance and operational effectiveness. In my new role, I see myself as the conscience keeper of the Mahindra Group, as the custodian of its values and the watchdog of the interests of its shareholders. Internal audit will continue to report to me. I will continue to exercise oversight through the Board,” said Ananda Mahindra, Chairman, Mahindra Group, on these changes. 

Anish Shah will transition to becoming Managing Director and CEO on April 2, 2021 with full oversight of all group businesses, in two phases, the company said. 

In the first phase, on April 1, 2020, he will join the M&M Board as Deputy Managing Director and Group CFO, with responsibility for the Group Corporate Office and full oversight of all business sectors of the Group other than auto and farm sectors (AFS). He will have direct accountability to the Board for his non-AFS responsibilities, it said. On April 2, 2021, he will be appointed as Managing Director and CEO, it added. 

On April 1, 2020, Rajesh Jejurikar will join the M&M Board as Executive Director (auto and farm sectors), with direct operational responsibility and accountability for the sectors. He will report to Goenka for the transition year and then report to Anish Shah from April 2, 2021 onwards.

On April 1, 2020, C.P. Gurnani, Managing Director & CEO of Tech Mahindra Ltd. will join the M&M Board as a non-executive Director. Rajeev Dubey, Group President (HR & Corporate Services) & CEO (After-Market Sector), will retire on April 1, 2020 on reaching the age of superannuation. He will continue to be associated with the Group in a non-executive and advisory capacity, the company said. 

Ruzbeh Irani will head Group HR & Communications, which includes CSR, Ethics and CIS. V. S. Parthasarathy will head the Mobility Services Sector, which is a new sector being created by combining the after-market sector, Mahindra Logistics and auto mobility services. Parthasarathy and Ruzbeh will report to Anish Shah. 

There will be further changes, both at the Group Corporate Office and Auto and Farm Sectors, and these changes will be announced on December 23, 2019, M&M said.

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