Ratan Tata to retire by 2012, hunt for the successor begins

CNBC reporter quotes that the Board of Tata Sons, on Wednesday, announced that it has formed a selection committee comprising of five members including an external member, for eventually deciding on a suitable successor to the Group Chairman Ratan N Tata.

Sources say that the committee will consist of four Tata group members and one non-Tata group member. The committee – been set up in accordance with its Articles of Association – has commenced its work.

As Ratan Tata is retiring by December-end of 2012 when he turns 75, the committee has already begun work on formulating selection criteria.

It is learnt that the committee will select successor from within Tata Group and outside.

Noel Tata, Ratan Tata’s half-brother who was recently appointed as MD of Tata International, is a top contender to head the $72 billion conglomerate. The move in search for Tata’s successor comes within days of Noel Tata’s elevation.

Though Ratan Tata appears to be on course to relinquish his position as group chairman within two years, he could continue as chairman of Sir Dorabji Tata Trust and Sir Ratan Tata Trust.

The criteria stipulates that the successor must have experience of running a large organisation, vision, integrity and leadership during the time of crisis, global exposure considering the nature of the group and operating in a global environment.

Tata Sons has an eight-member board. R Gopalakrishnan and Jamshed J Irani are likely to be the representatives from the Tata Sons board. NA Soonwala who retired last month is likely to be President of Sir Dorabji Tata Trust. Keki Dadiseth is likely to represent Sir Ratan Tata Trust. Nusli Wadia, an independent board member of Tata Steel and Tata Motors, is likely to be the independent member.

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