Mahindra had planned to take over as non-executive chairman in April 2020, in accordance with market regulator Sebi’s requirement that the chairperson of the board of directors of top 500 listed businesses is a non-executive director who is not connected to the MD or CEO. Sebi, on the other hand, has extended the deadline for compliance to April 2022.
In November 2021, Anand Mahindra, the long-serving chairman of Mahindra & Mahindra, will stand down from his executive post and become the non-executive chairman.
Mahindra & Mahindra Ltd (M&M) stated on Saturday that Anand Mahindra will remain as Executive Chairman till November 11, 2021. M&M said in a regulatory filing that Pawan Goenka and Anish Shah will continue to report to Anand Mahindra.
August 6, 2021, was his final address to M&M’s shareholders at the company’s annual general meeting as executive chairman, as he will transition to a non-executive role in November to comply with the upcoming Sebi mandate.
The development happened after the Securities and Exchange Board of India (Sebi) postponed its requirement for corporations to divide the roles of chairman and managing director by two years, until April 2022.
M&M said in a stock exchange filing that its board of directors and governance, nomination and remuneration committee (GNRC) had “unanimously” requested that Anand Mahindra continue as Executive Chairman until the end of his original term of appointment, which was approved by the company’s shareholders on November 11, 2021.
“Anand Mahindra has agreed to continue as Executive Chairman till the end of his initial period of appointment, in deference to the preferences of the GNRC and Board,” M&M said in a report to the Bombay Stock Exchange.
As a result, Anand Mahindra will remain the company’s Executive Chairman until November 11, 2021, according to M&M.
Major changes in key leadership roles will take effect on April 1, 2020, as part of a succession plan required by the retirement of top executives over the next fifteen months, according to the automaker’s announcement in December.
Anand Mahindra was supposed to step down as CEO and become non-executive chairman next year, starting April 1, 2020, according to the succession plan.
Anish Shah, Mahindra Group President (Strategy), who joined the group over five years ago from GE Capital, has been recommended to take on additional responsibilities as the next chief executive officer (CEO) for a year, beginning April 1, 2020, and ending November 11, 2020.
In the meantime, Anish Shah has been named as the company’s chief financial officer (CFO) until April 2021.
He would succeed Goenka as MD and CEO of the company for a four-year period after April 2, 2021, according to the company’s December 20, 2019 exchange filing.
According to Sebi regulations, by April 1, 2020, the top 500 listed companies must comply with the requirement of separating the responsibilities of chairman and managing director (MD) or chief executive officer (CEO).
In response to corporate demand and to keep compliance costs low amid the faltering economy, the regulatory provision’s implementation date has been pushed back to April 1, 2022.
