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:
- Reference the specific contrast between increased dividend payouts (₹126/share in FY25 vs ₹73/share in FY24)
- Ask how the company justifies record shareholder returns while citing uncertainty for employee compensation
- Question whether the company has analyzed the impact on employee morale, productivity, and retention
- 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.