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The continued involvement of these seasoned leaders is seen as a means to safeguard institutional knowledge, maintain strategic continuity, and add depth to boardroom decision making, while allowing executive directors to lead without interference.
Guenter Butschek, former CEO of Tata Motors, has been made a non-executive, non-independent director at the company. Bharat Puri, who recently retired as MD of Pidilite, has been retained as a non-executive, non-independent director.
Former Jaguar Land Rover CEO Thierry Yves Henri Bollore is now non-executive chairman of group company Tata AutoComp.
Rajeev Chaba, who was chairman emeritus of JSW MG Motor, has been made an advisor to the company.
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The Kumar Mangalam Birla-led Aditya Birla Group recently appointed Praveen Maheshwari, who retired last month from the role of Hindalco CFO, as advisor or non-independent director. HK Agarwal, former MD of Grasim Industries, is an advisor to the company board.
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Multinational companies tend to have a transactional equation with their management while Indian promoters continue to tap the expertise and knowledge of their talent well beyond the formal retirement age, said the chairman of a consumer conglomerate.
“Our group promoters consult the former director on all big decisions before taking a final call,” said a top executive at a Mumbai-based metals conglomerate. “He is like a trouble shooter and his guidance is greatly valued.”
These retired top executives, with years of experience, bring a wealth of knowledge that can be instrumental in overcoming strategic challenges and navigating roadblocks. However, their involvement needs to be managed carefully to avoid hindering the induction of new leadership and fresh ideas. One former MD being retained in an advisory role suggests that the key lies in maintaining a balance, where the new management team is not overshadowed by the presence of retired executives.
“It’s crucial that the retired executives remain open to new ideas and demonstrate a willingness to learn, ensuring that their contributions complement, rather than disrupt, the ongoing development of the organisation,” he said.
Shriram Subramanian, founder and MD of InGovern Research, said the move could be counter-productive.
“This approach can prevent the necessary induction of younger generations and hinder effective succession planning,” he said. “In a rapidly changing environment, new thinking is essential. Holding on to outdated practices and perspectives can ultimately stifle innovation and prevent the current leadership team from asserting its independence and making decisions that align with the organisation’s future needs.”
Tata veteran Harish Bhat is still associated with the group as Tata Sons advisor and director. Banmali Agrawala, N Ganpati Subramaniam, Suprakash Mukhopadhyay and FN Subedar have stayed on in various advisory capacities with the Tata Group after retiring. Rallis India appointed group veteran S Padmanabhan as additional non-executive chairman in August 2024.
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“Many such retired executives are given extensions, primarily so that they can mentor the next talent in line,” said Navnit Singh, chairman and regional managing director, Korn Ferry India. “This is also a way to protect organisational knowledge and skills from going to competition.”
JSW Group joint managing director Seshagiri Rao stepped down from the board in April 2023 but continues to be associated with the organisation as group CFO.
“The close understanding of our company's history, culture, and operations is invaluable to the board in navigating complex situations and making informed decisions,” said the promoter of a Mumbai-based company.
