Reactions to Cyrus Mistry’s ouster as Tata Sons’ chairman ranged from shock and surprise to nonchalance.
Mr. Mistry was a ‘nice guy’, but not seen as a good long-term prospect for the Tata Group, said a Tata Sons board member, who did not wish to be named. While Tata chairmen have usually held office for two-three decades, the Board hadn’t seen Mr. Mistry being able to play that role, he added.
The decision to replace Mr. Mistry was “virtually unanimous” with one or two abstentions, but no opposition. His removal did not come as a surprise, the board member said. He added: “There was no individual act of delinquency that led to his removal.” The group firms would decide on Mr. Mistry’s continuation as chairman of their boards, he said.
“I am still reeling under shock,” RPG Group Chairman Harsh Goenka said. “Cyrus Mistry’s exit has shaken the roots of the corporate world. I am sure there must be reasons as to why Mr. Tata has done this coup. But uncertainty at India’s most respected business group is not good for the nation.”
“Such a sudden removal of the chairman is not in the normal course of business,” said J. N. Gupta, MD, Stakeholders Empowerment Services, a proxy advisory firm. “It’s trigger has to be equally strong or else such a decision that could dent the reputation of the group would not have been taken,” he said.
