Have you ever heard that a big company has no CEO for years? Can it happen that a big company operates for many years without a senior executive? Yes, you are listening right. There is such a big well known company in the country which did not have any CEO for years. We are talking about Tata Sons, which controls the Tata Group. This company may now get a CEO for the first time in 104 years.
In fact, the leadership structure of this company is being restructured and governance standards are being revised. Under this, the post of CEO is being considered in the company. This has been said in a Bloomberg report. Under the proposed plan, the CEO will direct the 153-year-old Tata Group for business, while the chairman will oversee the operations from shareholder to CEO. According to Bloomberg sources, the approval of Tata Trusts Chairman Ratan Tata is considered important for the change in the leadership structure. The tenure of the current Tata Sons chairman Natarajan Chandrasekaran ends in February but he is being considered for an extension. The names of heads of various Tata Group companies, including Tata Steel Limited, are being considered for the post of CEO. A final decision has not been taken about this yet and its plan and details may change.
Let us tell you that in line with the recommendations of SEBI, there is a plan to change the leadership of Tata Group. According to SEBI, for better functioning of the country’s top 500 listed companies, the chairman and CEO should be separate by April 2022. Though Tata Sons is not a listed company, the changes will help it comply with this rule. Significantly, the Tata Group does more than 100 businesses and the number of its listed companies is more than 2 dozen. The combined annual revenue of the group in 2020 was $106 billion. The number of employees of the Tata Group is 750,000.
It is worth noting that Tata Steel, which is currently facing a debt of 10 billion dollars, while the new CEO of Tata Motors Group, which has been making losses for three consecutive years, will have to deal with many challenges. Along with this, the company’s plan to expand business in the digital space has not taken off yet. Tata Group has Asia’s largest software service provider in the form of Tata Consultancy Services but its plans to launch SuperApp for e-commerce business have not materialized so far.