TCS board to discuss share buyback on Chandrasekaran's last day as CEO before resuming bigger role
Chandrasekaran, who is also known as 'Chandra', will resume his role as the chairman of Tata Sons from tomorrow onward.
- Feb 20, 2017,
- Updated Feb 20, 2017 3:58 PM IST
The board of Tata Consultancy Services or TCS will take a decision today, which also happens to be the last day of Natarajan Chandrasekaran as the CEO, on share buyback. Chandrasekaran, who is also known as 'Chandra', will resume his role as the chairman of Tata Sons from tomorrow onward. Rajesh Gopinathan will replace Chandrasekaran as the chief executive officer and managing director at TCS from tomorrow.
- Activist shareholders, who are demanding better returns, are forcing companies to extinguish shares through buybacks. This will also ensure better value for the remaining shareholders. And will impose better capital discipline on companies who have not been doing anything with large piles of cash. This will force them to do M&A deals or return money. As Pai points out that Infosys Market Capitalisation has barely gone up in the last 5 years.
- Share buyback is a more tax efficient way of distributing earnings of the company. While dividends under Rs 10 lakh are not taxable in the hands of shareholders, companies have to pay tax on dividends. A share buyback program is a more tax efficient way of distributing earnings from a company's perspective.
The board of Tata Consultancy Services or TCS will take a decision today, which also happens to be the last day of Natarajan Chandrasekaran as the CEO, on share buyback. Chandrasekaran, who is also known as 'Chandra', will resume his role as the chairman of Tata Sons from tomorrow onward. Rajesh Gopinathan will replace Chandrasekaran as the chief executive officer and managing director at TCS from tomorrow.
- Activist shareholders, who are demanding better returns, are forcing companies to extinguish shares through buybacks. This will also ensure better value for the remaining shareholders. And will impose better capital discipline on companies who have not been doing anything with large piles of cash. This will force them to do M&A deals or return money. As Pai points out that Infosys Market Capitalisation has barely gone up in the last 5 years.
- Share buyback is a more tax efficient way of distributing earnings of the company. While dividends under Rs 10 lakh are not taxable in the hands of shareholders, companies have to pay tax on dividends. A share buyback program is a more tax efficient way of distributing earnings from a company's perspective.