In a major reshuffle of top executives at automobile major Mahindra & Mahindra, Anand Mahindra will step down as the Executive Chairman of the Board will step down with effect from April 1, 2020, and will transition to the role of Non-Executive Chairman of the Board. Pawan Goenka will 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.
â€śIn light of that, and in pursuance of the highest standards of corporate governance, over the past one year the Governance, Nomination & Remuneration Committee (GNRC) of the Board has completed a structured and rigorous review of top management succession, which has now been ratified by the Board of Directors,â€ť M&M said in a statement to the media.
As per new Sebi norms, the top 500 listed entities will have to 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 maker on November 11, 2016, and as part of the same transition, Anand Mahindra was redesignated as executive chairman of the group.
On April 1, 2020, Anish Shah will be designated as Deputy Managing Director and Group CFO, with responsibility for the Group Corporate Office and full oversight of all business Sectors of the Group other than Auto and Farm Sectors (AFS). He will have direct accountability to the Board for his nonAFS responsibilities. Anish Shah is currently Group President (Strategy).
After Goenkaâ€™s retirement, Anish Shah will transition to becoming Managing Director and CEO on April 2, 2021, with full oversight of all the 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.
â€śThis plan reflects M&Mâ€™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. Internal audit will continue to report to me. I will continue to exercise oversight through the Board,â€ť 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 Auto Mobility 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.