In a major reshuffle of top executives at automobile majorMahindra & Mahindra, Anand Mahindra will step down as the ExecutiveChairman of the Board will step down with effect from April 1, 2020, and willtransition to the role of Non-Executive Chairman of the Board. Pawan Goenkawill be re-designated as Managing Director and CEO with effect from April 1,2020. Key leaders at M&M are set to retire over the next 15 months.
"In light of that, and in pursuance of the highest standardsof corporate governance, over the past one year the Governance, Nomination& Remuneration Committee (GNRC) of the Board has completed a structured andrigorous review of top management succession, which has now been ratified bythe Board of Directors," M&M said in a statement to the media.
As per new Sebi norms, the top 500 listed entities will haveto ensure that the chairperson is a non-executive director from April 1, 2020.
The company added that there will be no change in any reporting relationships as a result of this re-designation. Pawan Goenka will retire on April 1, 2021, and post his retirement, Goenka will continue to retain direct responsibility of Ssangyong Motors as Chairman of its Board till his retirement date.
Pawan Goenka was elevated as the MD of the automobile makeron November 11, 2016, and as part of the same transition, Anand Mahindra wasredesignated as executive chairman of the group.
On April 1, 2020, Anish Shah will be designated as DeputyManaging Director and Group CFO, with responsibility for the Group CorporateOffice and full oversight of all business Sectors of the Group other than Autoand Farm Sectors (AFS). He will have direct accountability to the Board for hisnonAFS responsibilities. Anish Shah is currently Group President (Strategy).
After Goenka's retirement, Anish Shah will transition tobecoming Managing Director and CEO on April 2, 2021, with full oversight of allthe group's businesses, in two phases.
As Non-Executive Chairman, Anand Mahindra will serve as a mentor and sounding board for the Managing Director on issues to be presented to the Board, especially in areas of strategic planning, risk mitigation, and external interface. In addition, he will be available to provide feedback and counsel to the Managing Director on key issues facing the enterprise.
"This plan reflects M&M'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. An internal audit will continue to report to me. I will continue to exercise oversight through the Board," Anand Mahindra said.
The company also announced that Rajesh Jejurikar will join the M&M Board as Executive Director (Auto and Farm Sectors) from April 1, 2020, with direct operational responsibility and accountability for the sectors. He will report to Goenka for the transition year and then report to Anish Shah from April 2, 2021, onwards. He is currently the president of the farm equipment business. On April 1, 2020, CP Gurnani, Managing Director & CEO of Tech Mahindra too will join the M&M Board as a non-executive Director.
Rajeev Dubey, Group President (HR & Corporate Services) & CEO (After-Market Sector), will retire on April 1, 2020, on reaching the age of superannuation. He will continue to be associated with the Group in a non-executive and advisory capacity.
Ruzbeh Irani will head Group HR & Communications, which includes CSR, Ethics, and CIS.
VS Parthasarathy will head the Mobility Services Sector, which is a new Sector being created by combining the After-Market Sector, Mahindra Logistics and AutoMobility Services The company also said that there will be further changes, both at the Group Corporate Office and Auto and Farm Sectors. These changes will be announced on December 23, 2019.
