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Anand Mahindra to assume non-executive chairman role in M&M succession plan

Mahindra & Mahindra, the Indian auto major with interest in defence manufacturing, energy and farm equipment, is revamping its senior management structure as part of a succession plan in which Anand Mahindra will transition to the role of non-executive chairman, effective 1 April, 2020. He is currently the executive chairman of the group.

Pawan Kumar Goenka, who has been re-appointed managing director at M&M, will have additional responsibilities as the new chief executive officer (CEO) for a year, effective 1 April, 2020.

In an announcement today, the company said M&M’s governance, nomination and remuneration committee (GNRC) undertook a board and senior management restructuring exercise. The firm has created the CEO position as it aims to implement its plans around electric mobility and capitalise on the synergies with Ford’s India operations in the near future.

Anish Shah, current group president strategy at M&M, would replace Goenka, who will retire once his term ends on April 1, 2021. Shah, who also takes over the role of chief financial officer (CFO) from April, 2020 for a year, replacing V S Parthasarathy, the current CFO, will be appointed the MD and CEO at M&M for four years beginning April 2021. His term will end March 31, 2025.

“Mahindra will serve as a mentor and sounding board for the Managing Director on issues to be presented to the Board, especially in the 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,” a company release said.

On April 1, 2020, Rajesh Jejurikar will join the M&M Board as Executive Director (Auto and Farm Sectors), with direct operational responsibility and accountability for the sectors. He will report to Goenka for the transition year and then report to Shah from April 2021.

C P Gurnani, Managing Director & CEO of Tech Mahindra Ltd, 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 2020 on reaching the age of superannuation and will continue to be associated with the Group in a non-executive and advisory capacity.

V S 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.

Anand Mahindra, chairman, Mahindra Group said “this plan reflects M&M’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”.

Speaking on behalf of the Governance, Nomination & Remuneration Committee (GNRC) of the Board of Directors of M&M Ltd, M M Murugappan (GNRC Chairman) said, “The GNRC interviewed internal candidates and also considered the prospect of external candidates. This thorough and rigorous process reflects the highest standards of corporate governance. We are confident that the new leadership team is well equipped to perpetuate the Mahindra Rise culture and values while ensuring rapid and profitable growth.”

There are more changes on the anvil both, at the Group corporate Office, and at the auto and farm Sectors, the company said.

Source: Business Standard