In October last year, Cyrus Mistry was fired as Tata Sons chairman.
Cyrus Mistry was appointed as chairman of the Tata Sons board in December 2012, succeeding Ratan Tata.
Nirmalya Kumar, who was group executive council (GEC) member under Cyrus Mistry, in his latest blog revealed how the former Tata Sons Chairman was sacked from his job. In October last year, Mr Mistry was fired as Tata Sons chief. Mr Kumar wrote that Mr Mistry was “offered the option of resigning or facing the resolution for his removal at the upcoming board meeting” by Ratan Tata and Tata Sons board member Nitin Nohria in Bombay House 4th floor office. Mr Kumar further stated that “only two Tata CEOs, Bhaskar Bhat and Harish Bhat, have had anything negative to say about Cyrus Mistry.”
Here are the excerpts from Mr Kumar’s blog:
On 24 October 2016, Cyrus was in his Bombay House 4th floor office examining what seemed like a routine agenda for the Tata Sons board meeting that was scheduled to start in five minutes at 14:00 hours. Through the grapevine, Cyrus had heard that some of the board members had an unscheduled informal meeting earlier that morning. However, what they had discussed was unknown, and as such, he did not give it much further thought. The previous week had been business as usual with trips to China and Singapore to meet partners and investors.
A knock on the door, and to his surprise, enter his predecessor, Ratan Tata and Tata Sons board member Nitin Nohria. Cyrus welcomes them and asks them to take the two chairs opposite him. Nitin Nohria begins by proclaiming that “Cyrus as you know the relationship between you and Ratan Tata has not been working.” Therefore, Nohria continues, Tata Trusts have decided to move a board resolution removing Cyrus as Chairman of Tata Sons. He is offered the option of resigning or facing the resolution for his removal at the upcoming board meeting. Ratan Tata chimes in at this stage to say he is sorry that things have reached this stage.
Cyrus Mistry calmly responds with gentlemen you are free to take it up at the board meeting and I will do what I have to do. Nitin Nohria and Ratan Tata exit the room and walk over to the other end of the hallowed 4th floor of Bombay House, where the board room is located. Cyrus, sends a text “I am being sacked” to his wife Rohiqa, before putting on his jacket and heading to the Board Room.