Communicate with investors clearly: Rishad Premji
MUMBAI: Days after activist investor Elliott Management got Cognizant to do a big share buy back and change board composition, Wipro's chief strategy officer Rishad Premji said there should be clear communication with shareholders on investment plans to avoid any activism.
"I think we really give much less credit to the investors. If you are able to communicate very clearly to the investors about the journey and path you are on, they can be patient with you," said Premji at the Nasscom India Leadership Forum in Mumbai on Thursday. Last year, Wipro approved a a buyback of up to 4 crore equity shares at Rs 625 per share with an aggregate amount not exceeding Rs 2,500 crore or $377 million.
With reference to the massive technology changes that are buffeting the IT industry, Premji said, "If there is ever a time for the companies in the IT services industry to be bold it's now. The uncertainty around the US elections, the Brexit and you have shareholder activism on top of that. We are in a whole different level of complexities, fundamental change is happening in the industry. There is a need for organizations to design themselves to deal with such complexities."
Asked how companies incentivize employees in the stable business while living the excitement on the newer ones, Premji said, it's important not to create the poor cousin feeling in the stable business. "The reality is that's the cash cow that will fund your future. Teams shouldn't be looking down upon the old and that's very important," he said.
"I think we really give much less credit to the investors. If you are able to communicate very clearly to the investors about the journey and path you are on, they can be patient with you," said Premji at the Nasscom India Leadership Forum in Mumbai on Thursday. Last year, Wipro approved a a buyback of up to 4 crore equity shares at Rs 625 per share with an aggregate amount not exceeding Rs 2,500 crore or $377 million.
With reference to the massive technology changes that are buffeting the IT industry, Premji said, "If there is ever a time for the companies in the IT services industry to be bold it's now. The uncertainty around the US elections, the Brexit and you have shareholder activism on top of that. We are in a whole different level of complexities, fundamental change is happening in the industry. There is a need for organizations to design themselves to deal with such complexities."
Asked how companies incentivize employees in the stable business while living the excitement on the newer ones, Premji said, it's important not to create the poor cousin feeling in the stable business. "The reality is that's the cash cow that will fund your future. Teams shouldn't be looking down upon the old and that's very important," he said.
