Shareholders slam TCS CEO salary at AGM

MUMBAI: Shareholders at Tata Consultancy Services annual general body meeting queried CEO N Chandrasekaran's payout for FY16, especially the ratio of his salary to the median remuneration, contrasting it with their dividends and lack of bonus shares.

In FY16, Chandrasekaran’s salary rose 20% to Rs 25.6 crore and he received an additional Rs 10 crore as a one-time special bonus. Chandrasekaran’s compensation now stands at 459.84 times the median level at TCS, widening from 416 times in the previous year.

“We have imposed restrictions on age in this country. We should impose restrictions on income. This is not the Tata tradition. This is uneven distribution of income. You only see this in two IT companies in India – one in Bangalore, one in Mumbai,” a shareholder said to the Board.

Also Read: Give us 'sikkas': TCS shareholders demand bonus shares from Mistry


A second shareholder asked how it was possible to have such a large salary-to-median-ratio level, especially as shareholders have not been compensated. A third asked why TCS was trying out these ‘American practices’ in a poor country.

Chairman Cyrus Mistry fielded the questions on CEO compensation.

“The board is cognizant of the benchmark salary structure in the industry. We have applied those benchmarks and we think we have applied them appropriately,” Mistry said.

Infosys CEO Vishal Sikka earned about Rs 49 crore in the last financial year and his pay was 935 times the median remuneration of employees.

Sikka’s name was often heard at the TCS AGM, with shareholders bringing him up to press their case for bonus shares.

“We haven’t had a bonus for six years. Humme Sikka jaisa aadmi chahiy. Woh khaata hai, khaane bhi deta hai. Kitna bonus share diya Infosys mein,” a third shareholder said. His statement loosely translates to Sikka gets paid but he spreads it around, he has given lots of bonus shares at Infosys.

Some complaints were more easily handled. An aged shareholder complained that the map showing the route to the AGM had shown an unnecessarily long way.

“We don’t all run marathons, you know,” the shareholder said.

Mistry assured shareholders that next year the company would give them better maps.