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Tata group may extend retirement policy

BS Corporate Bureau in Mumbai

The Tata group, which lowered the retirement age for non-executive directors in holding company Tata Sons to 70 years from 75, is planning to extend the policy to other group companies.

The policy of truncating the tenure for non-executive directors for the holding company was introduced in June 2000.

Speaking at the Tata Power annual general meeting today, group chairman Ratan Tata said, "The retirement age is sought to be brought down to 70 years." Tata was responding to a shareholder who suggested that the retirement age of senior executives of the Tata group be increased.

Extending the retirement policy to other group companies would imply that Tata, who turns 65 in December, would then have to step down from all group companies where he is chairman. The total number of such group companies is around 15.

Though there is considerable speculation on Tatas successor, group sources say a successor for Tata will not be immediately appointed. They indicated that the successor was likely to be appointed about one or two years before Tata turned 70, in December 2007.

As per the group retirement policy, executive directors have to relinquish their executive position after turning 65. Tata himself has indicated that he would do so and would continue as non-executive chairman.

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