Mahindra & Mahindra Ltd said on Friday executive chairman Anand Mahindra will move to a non-executive role next year as part of a top management reshuffle.
Mahindra will become non-executive chairman with effect from April 2020, the company said in a statement.
Managing director Pawan Kumar Goenka will be re-designated as MD and CEO with effect from April 1, 2020. He will retire on April 1, 2021, when Anish Shah will take over as the MD and CEO, the company said.
There will be no change in any reporting relationships as a result of Goenka's re-designation. He will retire on April 1, 2021 and will continue to retain direct responsibility of SsangYong Motors as chairman of its board till his retirement date mentioned before.
As non-executive chairman, Mahindra will serve as a mentor and sounding board for the MD 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 MD on key issues facing the enterprise.
Shah, currently group president (strategy), will be appointed as chief financial officer replacing V S Parthasarathy from April 1, 2020, and will take charge as additional director of the company from April 15 till the next annual general meeting.
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.
Ruzbeh Irani, currently president (group communications and ethics) and chief brand officer, will head group HR and communications, which includes corporate social responsibility, ethics and CIS.
Parthasarathy and Ruzbeh will report to Shah.
The top brass changes are part of the structured and comprehensive succession-planning programme over a period of time and was approved by the board of directors and governance, nomination and remuneration committee at its meeting on Friday.
Announcing these changes, Mahindra 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.”
Apart from the above, Rajeev Dubey, group president (HR and corporate services) and 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, the company stated.
Further, Rajesh Jejurikar and CP Gurnani will be appointed as additional directors of the company and Jejurikar will also serve as executive director (automotive and farm sectors) for a period of five years from April 1, 2020 to March 31, 2025.