After Chandra exit, Tata Trusts begins search for new Tata Sons chief

The Sir Dorabji Tata Trust has moved to begin the process of selecting the next chairman of Tata Sons, a day after N Chandrasekaran announced that he would not seek reappointment when his current tenure ends on February 20, 2027.

The Trust said on Thursday that its trustees have passed a resolution to initiate the setting up of a selection committee “as soon as possible” in accordance with the Articles of Association of Tata Sons. The committee will recommend a person for appointment as the new Chairman of the Board of Directors.

Chandra cites six-month deadlock

In his statement issued on August 12, Chandrasekaran said he had completed 40 years of professional life at the Tata Group and described leading Tata Sons for the past decade as “a great honour and a profound responsibility.”

He said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended extending his next term by five years. The proposal was subsequently recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board before being tabled at the February 24, 2026 board meeting.

“However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision,” Chandrasekaran said.

He added that six months had passed since that board meeting without a resolution.

“Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution,” he said, adding that leadership clarity was important not only for the group but also for “employees, investors, partners and other stakeholders.”

Trusts back orderly transition

Chandrasekaran said he had communicated his decision to the Tata Sons Board and asked it to decide on succession soon to ensure a proper transition.

The Sir Dorabji Tata Trust, meanwhile, said it respected his decision and placed on record its “deepest appreciation” for his contribution and stewardship of Tata Sons and the Tata Group over the past decade.

The Trust also pledged “full support” to Tata Sons in ensuring a “smooth, timely and orderly transition of leadership”, consistent with the values and long-term interests of the group.

The development formally sets the succession process in motion, with the selection committee now expected to recommend Chandrasekaran’s successor. Reuters reported that the Trust’s move follows his decision not to seek another term after the prolonged board-level deadlock.