Mistry’s performance was lauded by Tata Sons Board’s remuneration panel-reports

Four months before Cyrus Mistry was fired, the remuneration committee of the Tata Sons board lauded Cyrus Mistry’s performance and also recommended a salary hike.

“The committee reviewed Mistry’s performance and recorded its recognition of his significant contribution across group companies. The company also appreciated Mistry’s multifaceted initiatives aimed at preserving and promoting cohesive functioning of the group in accordance with its distinctive values,” a source told ET, adding “the committee then agreed to recommend the board of Tata Sons an increase in Mistry’s basic salary and commission.”

This comes as a surprise as the Tata Sons board has maintained it removed Mistry over his non-performance and deviation from Tatas ethos. The Tata Sons board members have also accused Mistry of taking wrong decisions in the past, which had put the group in a tight spot.

Meanwhile, ET quoted sources as saying the group’s board was offering a bigger increment to Mistry but he insisted that his salary shouldn’t exceed the 6% offered to his top team, the Group Executive Team.

The Tata Sons directors on the nomination panel are Ronen Sen, the chairman of the committee and independent director, Vijay Singh, the nominee director representing Tata Trusts, and Farida Khambata, independent director.

Sources told ET that during a meeting held on June 28, Sen said that Mistry, if judged on his past experience garned from site visit, he not only earned the respect of CEOs and senior management but also operational personnel.

"The board in its collective wisdom decided that it may be appropriate to consider a change for the long term interests of Tata Sons and the Tata Group," group spokesperson Debasis Ray told ET.

"Although over a week has passed, the board of directors of Tata Sons is not forthcoming as to why Mr Mistry was unceremoniously treated this way without regard to any values. One lone trustee of Tata Trusts has suggested his removal was for non-performance. If at all this ostensible reason is to be believed, and then the directors who were part of the committee who voted in favour of his removal clearly failed to apply their mind independently and discharge their fiduciary duty," a person close to Mistry told ET.
(image: Indiatimes)