Term not over yet: Tata Sons chairman Chandrasekaran steps down; did Air India troubles play a role?

NEW DELHI: N Chandrasekaran, the executive chairman of Tata Sons, has stepped down from his position ahead of the company's annual general meeting scheduled for August 18. Chandrasekaran, whose current term was set to end in February 2027, had earlier indicated that he would not seek reappointment.

He is stepping down after completing 40 years of professional service with the Tata Group. Having led Tata Sons for the past 10 years, Chandrasekaran has asked the board to begin the process of finding his successor. He said the move was aimed at ensuring a smooth transition of leadership. Chandrasekaran received a total remuneration of Rs 158.6 crore in the 2025-26 financial year, the highest annual compensation disclosed for a Tata Sons director since the company began reporting directors' remuneration in its financial statements.

The trusts that control the Tata Group had unanimously approved and recommended a proposal to reappoint Chandrasekaran as chairman for another five-year term after February next year. However, when the proposal was considered by Tata Sons' Nomination and Remuneration Committee, one member did not support it. Chandrasekaran's decision comes amid an ongoing power dispute within Tata Sons. The reported poor performance of some Tata Group businesses, including Air India, is also being cited as a possible factor behind his decision.

There had already been disagreements over issues such as the proposed listing of Tata Sons, the holding company of Tata Group firms, appointments to its board of directors and Chandrasekaran's reappointment. Several attempts to resolve these issues through discussions had reportedly failed. As Chandrasekaran, popularly known as Chandra, steps down, speculation is growing over who will succeed him as the next head of Tata Sons.