Cyrus Mistry was the chairman of India’s largest and globally most renowned conglomerate. He came into limelight, which he instinctively relinquished until he assumed the position. Even as chairman of Tata Sons, he did not give any interviews to the press, preferring to let his work and business speak for itself. His style was grounded and friendly, not stress-inducing to his subordinates or peers. One incident can describe his calm, simple yet effective working style, which this author has witnessed firsthand. Mistry was appointed as the co-chair of the Indo-US CEO Forum by Prime Minister Narendra Modi and was to host a high-profile visit of US President Barack Obama to India. The agenda for the conference was to be finalised, a joint statement was to be carefully drawn up to the last comma, and a meaningful action plan was to be drawn up. All this in coordination with government people at the highest level, as well as working with some of the biggest leaders of Indian industry. As co-chair, Mistry made everyone involved, and the CEO conference, which was attended by both the Prime Minister and the President, was a huge success. What many might not know is that behind the scenes, he worked tirelessly for weeks before meeting with the team. Even to the extent of going over every subtle detail, the night before the conference, to make sure everything works flawlessly. His attention to detail did not mean he was a meticulous manager. He was not charismatic in any sense, nor did he show any pretentiousness. But his energy was infectious and inspired his team as well. If this incident is any indication, the Tata Group lost a very promising business leader when it sacked him in 2016.
Some of the initial steps of Cyrus Mistry taking over as the chairman of Tata Sons are also telling. The Tata group was anyway known for its high standards of corporate governance, but Mistry took it up several notches. For example, he insisted that his family firm, the Shapoorji Pallonji Group, be put away for any construction contracts with the Tata Group, a favorable practice that the Mistry family-owned companies had traditionally enjoyed for decades. . He was also instrumental in closing some long-term contracts which gave the preferred treatment to SP Group firms. He was thick-skinned enough to be taken aback by rumors about his alleged misdeeds or motivations.
A bone of contention among top Tata executives was how much information could be shared with elders who were not on the boards of officially listed Tata entities. Securities and Exchange Board of India’s norms against insider trading were strengthened. Not only was there a prohibition against the use of insider information for personal gain, but if no profit was sought, no information could be shared until it became public. Certainly, it was a very strict and high standard that Mistry wanted the Tata group to adhere to. This was the high level that Mistry insisted on. It certainly shattered many feathers, which eventually led to a storm, leading to its eventual downfall. Some were not happy with the tight control over information leaks that Mistry had put in place. Ratan Tata, who initially persuaded the reluctant Mistry and appointed him chairman, had advised him, “If you want my input, I will give it to you, but be your own man and be yourself and inspired by this fact.” Be that every action you do and your every move must stand the test of public scrutiny.” Mistry followed it faithfully. He was also instrumental in codifying the first official manual of corporate governance in the Tata Group, which was prepared and prepared just before his exit. One is perhaps to adopt those standards into their legacies, and to strengthen them further. He also appointed the first brand custodian for the group, a role to reinforce Tata’s reputation for the twin pillars of good governance and giving back to society.
Mistry’s expulsion at that infamous board meeting in October 2016 was indecent and unfair. Just as Yudhishthira lost his two-inch-high and pristine position in the Mahabharata, this event also took away some of the shine of the Tata group. It is ironic that one of India’s bitterest legal battles over corporate governance took place at the highest levels of a prestigious conglomerate. The apex court’s final verdict was only a partial recognition for Mistry, but he fought mostly the same battle till the end. To this writer, he himself appears to be more unjust than wrong. In his passing, India Inc. has lost a promising and down-to-earth leader. When he took over as the leader of our largest group, he probably had mentally committed the next two decades of his young life. His style was changeable with consistency. He was oblivious to review past decisions and take corrective action in a non-disruptive manner. Alas, this was not to happen.
The Tata Group is probably the only business entity in the world that is owned by top two-thirds of non-profit trusts, which are mandated to donate all their income to charity. It is a stunning model, and we attribute this unique structure to the late Jamsetji Tata and his two sons, Dorab and Ratan.
The Egyptians certainly understood the weight of this wonderful legacy and knew that they had to walk shoulder to shoulder. He tried to take it further in his calm and simple way. But fate cut his term with the final crown, and now his life too.
Ajit Ranade is a Pune-based economist
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