Tata Motors yet to name new CEO, Butschek to get extension? – Times of India
[ad_1]
MUMBAI/CHENNAI: With just two weeks left for Tata Motors CEO Guenter Butschek’s term to come to an end, the flagship of India’s largest conglomerate, the Tata Group, is yet to name his replacement.
Since March, Tata Motors — through recruiter Egon Zehnder — has been searching for a successor to Butschek, who is on an extension till June 30. To be sure, Tata Motors had selected German national Marc Llistosella as Butschek’s replacement in February. But it withdrew the chief executive job offer a month later in an unusual U-turn for such a high-level automotive appointment.
There is speculation that Butschek’s term could be extended again. His original five-year tenure with Tata Motors had ended in February and his contract was renewed for another four and a half months.
The Tata Motors board will meet on Thursday to consider Butschek’s extension or a CEO’s appointment. Tata Motors declined to comment for this report, which it described as speculative. It said that it’s the prerogative of the nomination & remuneration committee and the board to make this decision.
If Tata Motors is without a CEO after June 30, it will be the fourth time in the past 27 years where it is without a chieftain and where its operations will have to be overseen by the chairman N Chandrasekaran.
Before Butschek, Tata Motors was without a CEO for two years (2014 till 2016) after Karl Slym’s sudden demise. At that time, former Tata Motors chairman Cyrus Mistry supervised its functioning. The company was also without a CEO for 10 months in 2012, after Prakash Telang superannuated. Before that too, it was without a CEO for 10 years (1994 to 2005), after J E Talaulicar retired. Tata Motors chairman emeritus Ratan Tata oversaw the company’s operations during that period.
Current Tata Motors chairman Chandrasekaran will then have to devote more time to the company and work along with its six-member management team to take the Tata Group flagship to the next growth level amid challenges and competition.
Butschek, also a German national, has been managing Tata Motors from his home country Austria for most of the Covid pandemic that has restricted human mobility. If Butschek’s term is further extended till Tata Motors finds his successor, he would prefer continuing to work from Austria, it is learned. Butschek has been restructuring the company’s operations by narrowing its losses, cutting costs, lowering debt and spinning off the passenger vehicle business into a separate entity.
Since March, Tata Motors — through recruiter Egon Zehnder — has been searching for a successor to Butschek, who is on an extension till June 30. To be sure, Tata Motors had selected German national Marc Llistosella as Butschek’s replacement in February. But it withdrew the chief executive job offer a month later in an unusual U-turn for such a high-level automotive appointment.
There is speculation that Butschek’s term could be extended again. His original five-year tenure with Tata Motors had ended in February and his contract was renewed for another four and a half months.
The Tata Motors board will meet on Thursday to consider Butschek’s extension or a CEO’s appointment. Tata Motors declined to comment for this report, which it described as speculative. It said that it’s the prerogative of the nomination & remuneration committee and the board to make this decision.
If Tata Motors is without a CEO after June 30, it will be the fourth time in the past 27 years where it is without a chieftain and where its operations will have to be overseen by the chairman N Chandrasekaran.
Before Butschek, Tata Motors was without a CEO for two years (2014 till 2016) after Karl Slym’s sudden demise. At that time, former Tata Motors chairman Cyrus Mistry supervised its functioning. The company was also without a CEO for 10 months in 2012, after Prakash Telang superannuated. Before that too, it was without a CEO for 10 years (1994 to 2005), after J E Talaulicar retired. Tata Motors chairman emeritus Ratan Tata oversaw the company’s operations during that period.
Current Tata Motors chairman Chandrasekaran will then have to devote more time to the company and work along with its six-member management team to take the Tata Group flagship to the next growth level amid challenges and competition.
Butschek, also a German national, has been managing Tata Motors from his home country Austria for most of the Covid pandemic that has restricted human mobility. If Butschek’s term is further extended till Tata Motors finds his successor, he would prefer continuing to work from Austria, it is learned. Butschek has been restructuring the company’s operations by narrowing its losses, cutting costs, lowering debt and spinning off the passenger vehicle business into a separate entity.
[ad_2]
Source link
