Why Tata’s fallen Mistry recalls the legacy of Coke’s Douglas Ivester

In his letter to the Board challenging his dismissal, Cyrus Mistry, the erstwhile Chairman of India’s Tata Group, wrote, “To ‘replace’ your Chairman … in a summary manner must be unique in the annals of corporate history.” If Douglas Ivester had been following the Tata saga from his plantation in Georgia, he must have smiled ruefully, noting, “Not unique, Cyrus. Been there, done that.” Ivester too had been elected chairman of a venerable brand name, Coca Cola (on October 24, 1997). Both had succeeded superstars – Roberto Goizueta and Ratan Tata – beloved internally and externally for their unlimited vision and optimism. Both took hard decisions which perplexed many, centralized power and dismissed – or instigated resignations of – well-regarded executives. Both left under explicit (Mistry) or inexplicit (Ivester) Board pressure; Ivester announced his departure after 25 months and left 5 months later, while Tata’s Board removed Mistry after 46 months. Subsequently, rumors circulated that the two Boards – each of which included a distinguished academic as well as top investors and CEOs – had felt ignored.