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We Assume Shareholders Could Contemplate Being Extra Beneficiant With Tata Consultancy Companies Restricted’s (NSE:TCS) CEO Compensation Bundle

CEO compensation

Shareholders will benefit from the robust results Tata Consultancy Services Limited (NSE: TCS) recently, and they will be keeping an eye on this as they go to the Annual General Meeting on June 10, 2021. This would also be a chance for them to hear the board review of financial results, continue to discuss future company strategy Improve and vote on resolutions such as executive compensation. We have prepared some analysis below and show why we think CEO salaries look decent with the possibility of a raise.

Check out our latest analysis for Tata Consultancy Services

How does Rajesh Gopinathan’s total compensation compare to other companies in the industry?

At the time of publication, our data shows that Tata Consultancy Services Limited has a market capitalization of 12t yen and reported total annual CEO compensation of 204 million yen for the year ended March 2021. That’s a remarkable 52% increase over the previous year. We think total compensation is more important, but our data shows the CEO salary is lower at ₹ 13 million.

By comparison, other companies in the industry with a market capitalization of over 583 billion yen reported an average total CEO compensation of EUR 628 million. In other words, Tata Consultancy Services pays its CEO less than the industry average. In addition, Rajesh Gopinathan also holds 8.7 million shares in Tata Consultancy Services directly under his own name, which shows us that you have a significant personal stake in the company.

component20212020Share (2021)
salary13m14m6%
Other191m120m94%
Total compensation204m134m100%

At the industry level, it’s fascinating to see that total total compensation represents salary and non-wage benefits don’t even count in the equation. Tata Consultancy Services provides a lower proportion of salary compensation compared to the industry as a whole. It is important to note that a propensity for non-salary compensation suggests that total compensation is tied to company performance.

NSEI: TCS CEO Compensation June 4, 2021

A look at Tata Consultancy Services Limited’s growth numbers

For the past three years, Tata Consultancy Services Limited has increased earnings per share (EPS) by 8.9% per year. Last year it achieved a sales growth of 4.6%.

We’re not particularly impressed with the sales growth, but the slight improvement in EPS is good. Given these factors, we’d say the performance was pretty decent, if not terrific. If you step away from the current shape for a second, this free visual representation of. to check what analysts expect for the future.

Was Tata Consultancy Services Limited a Good Investment?

With a total shareholder return of 93% over three years, Tata Consultancy Services Limited performed well with shareholders. As a result, some may believe that the CEO should be paid more than is common in companies of similar size.

Conclude…

While the company seems on the right track in terms of performance, there is always room for improvement. Assuming the business continues to grow well, few shareholders would object to the CEO’s compensation. Instead, investors might be more interested in discussions that would help guide their longer-term growth expectations, such as the company’s business strategies and future growth potential.

If you think CEO compensation tiers are interesting, you will likely love this free visualization of insider trading at Tata Consultancy Services.

Important NOTE: Tata Consultancy Services is exciting stock, but we understand investors are looking for an unencumbered balance sheet and blockbuster returns. Maybe you will find something better on this list of interesting companies with high ROE and low debt.

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