Natarajan Chandrasekaran, who on Wednesday stepped down as the Chairman of Tata Sons, has thanked all stakeholders for the support he received while heading the conglomerate. In a statement, Chandrasekaran noted that leading Tata Sons over the past decade has been a great honour.
“I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution. Leading Tata Sons over the past decade has been a great honour and a profound responsibility,” Chandrasekaran said in a statement.
The 63-year-old, whose second term ran until February 2027, announced his resignation six months ahead of schedule.
N. Chandrasekaran stepped down amid shareholder-related tensions and differences with Tata Trusts chairman Noel Tata, resulting in his decision to resign six months prior to the end of his term.
N. Chandrasekaran served as Chairman of Tata Sons for approximately six years, having been appointed in January 2017 and resigning in August 2023.
The proposal to extend N. Chandrasekaran's term was not approved due to a lack of unanimous support among the Board members, as one member did not support the resolution.
Following the news of N. Chandrasekaran's resignation, shares of several Tata Group companies, including TCS, Tata Steel, and Tata Motors, experienced a significant decline in value.
In his resignation statement, Chandrasekaran thanked stakeholders for their support, highlighted his 40 years at the Tata Group, and emphasized the importance of clarity in leadership for stakeholders moving forward.
“My current tenure as the Chairman of Tata Sons comes to an end on Feb 20, 2027. Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of my next term for a period of five years, which was recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board. Subsequently, the resolution was tabled in the Tata Sons Board on Feb 24, 2026,” Chandrasekaran, who was appointed Chairman of Tata Sons in January 2017, noted.
According to Chandrasekaran, the proposal was not carried through because one of the Board Members did not support it.
“In the absence of unanimous support, I chose to defer the decision. It has been 6 months since that Board meeting, and no resolution has been reached till date,” he noted.
As the salt-to-software conglomerate goes through a tough phase, Chandrasekaran emphasised the need for Tata Sons to have a clear leadership beyond his tenure.
“Tata Sons is a very large institution, and there are many strategic projects that are under critical stages of execution. It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders,” he said.
Under these circumstances, earlier today, I have communicated to the Tata Sons Board that I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027.
Chandrasekaran said he has asked the Board to decide on the succession soon to ensure a proper transition.
