After removing Cyrus P Mistry as its chairman, The Tata Group released a statement on Friday which explicitly illustrates the reasons why they decided to do so.
It states that the Tata Group is concerned with the ‘results’ and with Mistry as its chairman, it was difficult to obtain the desired outcome.
“It is evident that the group under Mr Mistry’s leadership was intolerant to critical reports about the action taken under his aegis,” the statement read.
According to the statement, in spite of being Executive Vice Chairman for one year and the Executive Chairman for almost four years, Cyrus Mistry failed to produce results for the benefit of the company.
In fact, his articles also failed to explain as to how targets were achieved.
“The articles and interviews (of Mistry’s) are littered with text-bookish directives and objectives and other such nice sounding phrases with no indications of how these ambitious targets are to be achieved,” the statement said.
The statement also explains the decline in profits of the group since the last four years while expenses incurred on staff also increased during Mistry’s tenure. Apart from that, there was ‘little or no profit on sale of investments.’
Cyrus P Mistry was unceremoniously removed last month by the board of Tata Sons as its Chairman but he continues to remain the Chairman in some of the listed Tata companies.