Retirement of key leaders has required the company to make changes in top management, keeping in mind the pursuance of high standards of corporate governance
Mahindra & Mahindra Ltd (M&M) today announced a number of changes to its top brass over the next 15 months, due to the retirement of key leaders. Anand Mahindra, currently Chairman, Mahindra Group, will transition to the role of Non-Executive Chairman of the Board of M&M, effective 1 April 2020. Dr Pawan Goenka will be re-designated as Managing Director and CEO with effect from 1 April 2020, and will retire on 1 April 2021. This will be followed by Dr Anish Shah transitioning to becoming Managing Director and CEO of M&M on 2 April 2021, with full oversight of all Group businesses. Further changes are being made at the Group Corporate Office, and Auto and Farm Sectors, announcements for which will be made on 23 December 2019.
The Governance, Nomination & Remuneration Committee (GNRC) of the Board of the company has over the past one year completed a structured and rigorous review of top management succession, has now been ratified by the Board of Directors. The transition of Anand Mahindra to Non-Executive Chairman of the Board is in accordance with the SEBI guidelines, and will further enhance the independence of the Board, the company noted. It said that as Non-Executive Chairman, Mahindra will serve as a mentor and sounding board for the Managing Director on issues to be presented to the Board, especially in the areas of strategic planning, risk mitigation and external interface.
Meanwhile, Dr Goenka will continue to retain direct responsibility of Ssangyong Motors as Chairman of its Board till his retirement date.
Dr Shah’s transition into Managing Director and CEO will take place in two phases. Firstly, on 1 April 2020, he will join the M&M Board as Deputy Managing Director and Group CFO. In this phase, he will be responsible for the Group Corporate Office and full oversight of all business Sectors of the Group other than Auto and Farm Sectors (AFS). Dr Shah will have direct accountability to the Board for his non-AFS responsibilities. Subsequently, in the second phase he will be appointed as Managing Director and CEO on 2 April 2021.
Other changes, effective 1 April 2020, include the joining of Rajesh Jejurikar to the M&M Board as Executive Director (Auto and Farm Sectors), as well as CP Gurnani, Managing Director & CEO of Tech Mahindra Ltd, joining the M&M Board as a non-executive Director. Jejurikar will have direct operational responsibility and accountability for the auto and farm sectors, while reporting to Dr Goenka for the transition year and then reporting to Dr Shah from 2 April 2021.
Another retirement will be that of Rajeev Dubey, Group President (HR & Corporate Services) and CEO (After-Market Sector), on 1 April 2020, on reaching the age of superannuation. He will continue to be associated with the Group in a non-executive and advisory capacity, noted Mahindra & Mahindra. Ruzbeh Irani will head Group HR & Communications, which includes CSR, Ethics and CIS. Furthermore, VS Parthasarathy will head the Mobility Services Sector, which is a new sector being created by combining the After-Market Sector, Mahindra Logistics and Auto Mobility Services.
Anand Mahindra (Chairman, Mahindra Group), said this plan reflects the company’s depth of management talent and will ensure continuity in terms of culture, values, governance and operational effectiveness. “In my new role, I see myself as the conscience keeper of the Mahindra Group, as the custodian of its values and the watchdog of the interests of its shareholders. Internal audit will continue to report to me. I will continue to exercise oversight through the Board,” he added.
The GNRC interviewed internal candidates and also considered the prospect of external candidates, noted MM Murugappan, GNRC Chairman. He said this thorough and rigorous process reflects the highest standards of corporate governance. The GNRC is confident that the new leadership team is well-equipped to perpetuate the Mahindra Rise culture and values while ensuring rapid and profitable growth, Murugappan added.