N Chandrasekaran has decided to step down as chairman of Tata Sons, ending his nearly decade-long tenure at the helm of the Tata Group.
Chandrasekaran informed the Tata Sons board of his decision on Wednesday, 12 August, and said he would not seek an extension when his current term ends in February 2027.
Chandrasekaran took charge as executive chairman of Tata Sons on 21 February 2017, after spending three decades at Tata Consultancy Services, where he became chief executive and managing director in 2009. He was reappointed for a second five-year term in 2022.
N Chandrasekaran resigned due to the lack of unanimous support for extending his tenure by another five years, as one board member did not support the proposal.
His resignation comes before the upcoming shareholders' annual general meeting and allows for a clearer succession process for Tata Sons ahead of critical strategic projects.
In FY26, N Chandrasekaran's remuneration was ₹158.66 crore, making it the highest since Tata Sons began disclosing executive compensation.
The next chairman will be selected by a five-member committee, with nominations from the Sir Dorabji Tata Trust, Sir Ratan Tata Trust, the Tata Sons board, and an independent member.
N Chandrasekaran's current term as chairman of Tata Sons ends on February 20, 2027, and he will continue in his role until then.
His tenure has coincided with some of the Tata Group's biggest strategic bets, including the acquisition of Air India and expansion into semiconductors, electronics, electric vehicles, batteries and digital businesses.
Chandrasekaran said his decision was triggered by the lack of unanimous support for extending his tenure by another five years.
In his statement, he said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved to recommend a five-year extension of his term. The recommendation was also recorded by the Tata Sons Nomination and Remuneration Committee and the board.
The proposal was placed before the Tata Sons board on 24 February 2026. However, it was not carried through because one board member did not support the extension, Chandrasekaran said. In the absence of unanimous support, he chose to defer the decision.
Chandrasekaran said that six months had passed since that board meeting, but no resolution had been reached.
He said the uncertainty could not continue indefinitely because Tata Sons has several strategic projects at critical stages of execution. According to Chandrasekaran, having clarity over who will lead the group beyond February 2027 is important for employees, investors, partners and other stakeholders.
Chandrasekaran's resignation does not mean that he is leaving Tata Sons immediately.