Big Changes at Tata Trusts with Noel Tata’s Arrival! Why Were Two Major Positions Eliminated Right After the Chairman Change?

Tata Trusts : Since the passing of the late Ratan Tata, significant changes have been happening within the Tata Group. After Noel Tata became the chairman of Tata Trusts on October 11, he approved the elimination of certain positions within the Trust. There have already been some changes at Tata Trusts before this, and now it’s reported that the positions of Chief Financial Officer (CFO) and Chief Operating Officer (COO) have been removed. No new appointments will be made for these roles. According to a report by the Economic Times, this step has been taken to reduce expenses. The aim is to cut down costs associated with management levels in the Trust. Tata Trusts holds a 66% stake in Tata Sons, the holding company of the Tata Group. Therefore, it’s clear that the Trust has actual control over the companies within the Tata Group. After Ratan Tata’s passing on October 9, his half-brother Noel Tata was appointed as the chairman of the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust on October 11. The report states that the process of change within the Trust began even before Noel Tata’s appointment as chairman, as the Trust’s board had already approved it. Since Noel Tata took over as chairman, Tata Sons has been undergoing structural changes. As part of this, the two top positions were eliminated because an internal survey and audit revealed that staff expenses had risen to Rs 180 crore, and when additional project-related expenses were included, the total employee bill reached Rs 400 crore. This new change aims to reduce that expenditure. LiveMint reported last week that appointed members of the Sir Ratan Tata Trust and Sir Dorabji Tata Trust will now be permanent members, ending the tradition of appointing them for a fixed term. These members will remain in their positions unless they choose to leave. New appointments will only be made in special circumstances. So, it seems that since Noel was appointed as the chairman of the Trust, continuous changes have been observed. Following Noel Tata’s appointment as chairman of Tata Trusts, there were speculations that he might also be made the chairman of Tata Sons. However, it was later revealed that Ratan Tata had changed the rules about this back in 2022. According to the new rules, Noel cannot hold both the chairman positions of Tata Trusts and Tata Sons simultaneously.