Companies

Decision to oust Mistry was tough, but thought-out: Ratan’s letter to staff

| | | Updated on: Nov 01, 2016
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Tata Sons Interim Chairman Ratan Rata has termed the decision to oust Cyrus Mistry as tough but well considered.

In a communication to the employees of group, Tata said “The decision to change the leadership of Tata Sons was a well considered and serious one for its board members. This difficult decision, made after careful and thoughtful deliberations, is one the board believes was absolutely necessary for the future success of the Tata group,” Ratan Tata said in the letter seen by BusinessLine.

Tata also sought to calm nerves among the group employees by saying that the leadership of the various companies are empowered to serve with the same degree of passion and ethical commitment as they have done in the past.

This comes even as some of group executives earlier told BusinessLine that there was growing uncertainty within the group due to the emergence of two power centres. While Mistry has been removed as the Chairman of Tata Sons, he continues to be the Chairman of several group companies.

The executives said that there was no clarity on the decision-making process in this situation.

Ratan Tata said in his letter that he was looking forward to the finalisation of a new chairman by the selection committee.

This is the second communication from Tata to the employees since he took charge as the interim Chairman last week.

Published on January 27, 2018

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