Mumbai: In one of the biggest structural changes after Cyrus Mistry took over as the Chairman of Tata Sons, the holding firm of the over USD 100 billion Tata group, the company today announced formation of a Group Executive Council to carry forward the Tata legacy.
The Group Executive Council (GEC), under the aegis of the Tata Sons Board, will now assume responsibility for all the roles earlier performed by the Group Corporate Centre (GCC) and the Group Executive Office (GEO), Tata Sons said in a statement.
During the Chairmanship of Ratan Tata, who had retired on December 28 last year on turning 75, the GCC was responsible for providing strategy input while GEO took care of its execution.
As part of the new strategy, NS Rajan currently Partner and Global Leader (People and Organisation) at Ernst & Young, has been roped in as Member of GEC and Group Chief Human Resources Officer effective from May 9, 2013. He will be reporting to Mistry.
"The Group Executive Council (GEC), chaired by the Chairman of Tata Sons, Cyrus P Mistry, will comprise executives of Tata Sons and will provide strategic and operational support to the Chairman of Tata Sons," it added.
Commenting on the development, a Tata Sons spokesperson said: "The executive support infrastructure which existed at the time of the previous Chairman Ratan Tata have either retired from executive roles or from Tata Sons altogether. Therefore, there was a need to form the GEC to provide support to the new Chairman."
For instance, Arun Gandhi who played a key role in Tata group's global acquisitions has retired from Tata Sons, while others like Ishaat Hussain and R Gopalakrishnan have become non-executive directors.
The initial membership of the GEC will include N S Rajan, who will lead the strategic function of Human Resources and Mukund Govind Rajan, who will oversee Brand, Communication, Ethics and CSR, Tata Sons said.
The other member is Madhu Kannan, who will head Business Development and Public Affairs. Other appointees to the GEC will be announced in due course, it added.
"There is no definitive number to the membership of the GEC. The Chairman will select the new members," the spokesperson added.
The mandate of the GEC "is to own and drive the delivery of the core purpose of Tata Sons, which is long term value creation for all stakeholders", it said.
The agenda of the GEC includes, return on investment with a long-term perspective, support for and shaping of the agenda for philanthropy, preserving and enhancing the reputation of the Tata name, among others, it said.