SqueakyBiscuit
SqueakyBiscuit

Own 1 TCS Share, Gain a Voice: How Every shareholder Can Hold Management Accountable for uncertainty in hikes to employees

TCS recently announced a staggering ₹45,600 crore in dividends for FY 2024-25 while simultaneously deferring employee salary hikes due to "business uncertainty." This represents a 72% increase in dividend payout compared to last year. How can the company distribute record dividends while claiming uncertainty for regular employee increments?

Did you know that owning just ONE share of TCS gives you legal rights to question company decisions? Even a single share provides the standing to demand answers about these contradictory actions. This isn't about creating conflict—it's about ensuring fair treatment of all stakeholders.

Why this matters: The company follows a policy of distributing 80-100% of free cash flow to shareholders. If there's enough cash to significantly increase dividend payouts from ₹73/share last year to ₹126/share this year, why is there uncertainty around employee compensation that typically amounts to a fraction of this distribution?

How to take action without waiting for the AGM: • Email investor.relations@tcs.com with specific questions about dividend policies versus employee compensation strategies. • Request to inspect financial records and books - this is your legal right as a shareholder. • Submit written questions to be addressed at the upcoming AGM, even if you can't attend personally. • Join with other shareholders – even 100 shareholders together (regardless of shareholding size) can collectively request meetings with management.

Privacy concerns? Have a family member purchase a share and communicate on your behalf. They can simply identify themselves as a concerned shareholder in their email: "As a shareholder invested in TCS's long-term success, I'm writing to understand how distributing ₹45,600 crore in dividends aligns with deferring employee salary hikes. Could you explain how these decisions support sustainable growth and talent retention?"

What to include in your communication:

  1. Reference the specific contrast between increased dividend payouts (₹126/share in FY25 vs ₹73/share in FY24)
  2. Ask how the company justifies record shareholder returns while citing uncertainty for employee compensation
  3. Question whether the company has analyzed the impact on employee morale, productivity, and retention
  4. Ask what specific business metrics would need to improve before employee compensation reviews resume

Remember, this is about ensuring equitable treatment for all stakeholders. Employees are essential to TCS's continued success. By asking thoughtful questions through proper channels, we contribute to building a stronger company with fair practices.

If enough shareholders raise similar concerns, it creates meaningful pressure for transparency. One voice might be easy to dismiss—hundreds become impossible to ignore.

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JumpyPretzel
JumpyPretzel

If someone can put so much effort in questioning, he would better put efforts in preparing for interviews and resigning from the organisation!

SqueakyBiscuit
SqueakyBiscuit
TCS7d

It's not an either/or situation. Asking reasonable questions about company decisions is part of healthy corporate governance, whether you stay or leave. A shareholder's right to information exists precisely because transparency matters. Some may indeed choose to look elsewhere, but others who are committed to the organization's long-term success deserve answers too. Both preparing for your future AND seeking accountability in the present are valuable uses of your time - they aren't mutually exclusive.

QuirkyBoba
QuirkyBoba
TCS7d

It might not make much difference, but asking the right questions has always been the first step toward accountability and fairness.

ZoomyPickle
ZoomyPickle

Lol. You can question but management is not required to answer each shareholder query. The vote resides in Majority shareholder, which generally would be Promoter + FPI + DII's

SqueakyBiscuit
SqueakyBiscuit
TCS7d

True, management isn't legally obligated to answer every query, but there's value beyond immediate responses. Under SEBI regulations, shareholder questions on material matters often become part of formal disclosure requirements. When multiple small shareholders raise similar concerns, companies must address them in quarterly earnings calls or regulatory filings. Consider the 2019 Yes Bank case where persistent small shareholder questions about asset quality eventually forced greater transparency, despite initial resistance. And while promoters hold significant voting power, shareholder questions create documented concerns that board members must consider under their fiduciary responsibilities. The act of questioning itself creates accountability, even when immediate answers aren't provided.

SleepyBurrito
SleepyBurrito

You are asking top mgmt these questions to make them realize this? They're all in on it. Lol

You are asking this so it goes viral? You do realize many questions are screened out with enough silly reasons. You'll have better luck writing a reddit post and making it go viral so news media picks it up.

SqueakyBiscuit
SqueakyBiscuit
TCS7d

You make a fair point about screening - but Indian corporate history shows even "screened" questions can create real change. Take the Fortis Healthcare case from 2018: two minority shareholders holding just 12% managed to remove a director and appoint three new ones after consistently questioning the company's sale process. Or consider how Infosys founder-shareholders' persistent questions about executive severance packages eventually led to leadership changes despite initial resistance.

Even unsuccessful campaigns create pressure - in 2017, 45 out of 100 Nifty companies faced at least one resolution where 20%+ shareholders opposed management. Each question creates a record and demonstrates collective concern.

You're right that viral media attention helps enormously - but that attention often starts with formal complaints that create paper trails. The most effective approach combines both: formal channels establish legitimacy while public pressure amplifies the message.

Remember: corporate boards have fiduciary responsibilities that even sophisticated screening can't completely circumvent when enough shareholders raise similar concerns through proper channels.

DerpyBiscuit
DerpyBiscuit
TCS5d

Do you think other shareholders interested on whether employees get salary hike every year?

SqueakyBiscuit
SqueakyBiscuit
TCS4d

Yes, smart shareholders absolutely should care about employee compensation. Here's why:

  1. TCS's own annual reports show talent retention directly impacts delivery quality and client satisfaction - both key to shareholder value.

  2. Employee salary costs represent over 50% of total expenses - making compensation strategy a material financial decision affecting profitability.

  3. High attrition rates (currently 13.3%) increase hiring and training costs, which directly impacts margins.

  4. Research shows companies that consistently invest in employee compensation outperform industry peers in long-term shareholder returns.

  5. TCS's own CEO stated Calendar 2025 "should be better" than 2024, contradicting the uncertainty narrative used to defer hikes.

  6. The company won orders worth $12.20 billion in Q4 alone with a strong book-to-bill ratio of 1.6.

  7. TCS already promoted 1/6th of its workforce in FY25, showing business conditions support employee investment.

  8. Industry analysts consistently cite talent quality as TCS's competitive advantage - which requires competitive compensation to maintain.

  9. Companies with reputation for fair employee treatment during downturns recover faster when markets improve.

  10. The contradiction between a 72.6% dividend increase and delayed employee compensation raises governance concerns that institutional investors increasingly monitor.

GigglyBanana
GigglyBanana
TCS6d

That is good, also invest more in shares, at some point of time, you will not care about increments and bands, from only devidents only you may earn the whole year increment in a quarter. So sideline the job, spend only time in job which justify your package and put the remaining time in other places.

GroovyBanana
GroovyBanana

Every company knows that a shareholder has more options than a emplpyee... Better to Skill up dump this company... The day good employees leave this company.. Shares will bleed...

CosmicBiscuit
CosmicBiscuit

Iam. Interested

BubblyPenguin
BubblyPenguin
TCS4d

As far as I know, TCS employees cannot hold TCS shares as it will be considered as conflict of interest. Let me know if I am wrong

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