9 possible reasons behind the removal of Cyrus Mistry 9 possible reasons behind the removal of Cyrus Mistry
In an unexpected turn of events at Tata Group, the
less-than-four-years-old Chairman of over $100-billion salt-to-software
conglomerate, Cyrus Mistry, was sacked from the top post. Here are some
of the reasons rumoured to be behind Mistry's sacking.
Nevin John - Updated Oct 27, 2016, 4:34 PM IST
Former Tata Sons Chairman Cyrus Mistry
In an unexpected turn of events at Tata Group, the less-than-four-years-old Chairman of over $100-billion salt-to-software conglomerate, Cyrus Mistry, was sacked from the top post. Here are some of the reasons rumoured to be behind Mistry's sacking.
ALSO READ: Cyrus Mistry's Exit: A Look at His Life at the Helm of Tata Group
- Failed to turn around Tata Steel UK, rushed for sale. The acquisition price was $12 billion in 2007
- Tried to rope in his team in group companies and on its boards, changing the existing practice
- In combating mood with some of the executives at the group companies
- Aggressively pursued disposal of non-profitable businesses
- More keen to build new businesses--- e-commerce, defence and infrastructure--- rather than consolidating existing businesses
- Dividends reduced or cancelled at group companies, leading to sharholders' ire. (As the major stake holder, Tata Trusts are the largest beneficiaries of dividends through Tata Sons.)
- Tried to bring in group level mechanism to track performance of executives and employees at companies
- The emphasis on 'Profitability' applied with equal vigor on all group companies, despite the diverse nature of the businesses
- Marketed his three years of achievements in direct comparison to previous years of Tata
ALSO READ: Coup at Bombay House: Cyrus Mistry removed as Tata Sons chairman, Ratan Tata takes seat
Published on: Oct 24, 2016, 8:40 PM IST
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