Automobiles-to-software and financial services group Mahindra and Mahindra announced a detailed succession plan on Friday, which clearly spells out who will hold the reins of the company for the next six years till 2025. As a part of this plan, the Mumbai-based group’s current executive chairman Anand Mahindra will be re-designated as non-executive chairman with effect from April 1, 2020.
“Delighted to announce our leadership transition plan which reflects the group’s commitment to good governance,” Mahindra expressed on Twitter. “I am grateful to the board and nominations committee for conducting a diligent and rigorous year-long process that will ensure a seamless transition.”
As a part of this transition, Pawan Kumar Goenka, the current managing director of the company will be re-designated as managing director (MD) and chief executive officer (CEO) for a period commencing November 12, 2020 to April 1, 2021. Anish Shah, group president (strategy), will become the chief financial officer (CFO) of the company from April 1, 2020 to April 1, 2021. Shah will be groomed to take over the baton from Goenka as, in addition to being the CFO, he will also be made deputy managing director. Thereafter, Shah will take over as MD and CEO of the company, which reported a turnover of ₹1,09,000 crore in FY2019, from April 2, 2020 till to March 31, 2025.
The current CFO of the company, V.S. Parthasarathy will cease to be the company’s finance head from April 2020 as he will transition to a new role. However, Mahindra and Mahindra’s statement wasn’t clear on what this new role is.
Additionally, Rajesh Jejurikar, president – farm and equipment sector of the company will be appointed as an additional director on the company’s board from April 1, 2020, and will be re-designated as executive director (automotive and farm sectors) from April 2020 to March 2025. Also, C.P. Gurnani, MD and CEO of the group’s information technology arm Tech Mahindra will be appointed as a non-executive and non-independent director on Mahindra and Mahindra’s board from April 2020.
With increased levels of foreign institutional investment in the country, there has been a lot of focus on corporate governance in recently. And one of the sub-aspects of governance that investors want clarity on is succession planning to ensure continuity of business and decision-making.
Through the succession plan made public on Friday, Mahindra and Mahindra has ensured visibility on the group’s top management even after Mahindra moves to a non-executive role and his chief lieutenant of several decades, Goenka retires.