New Delhi, Jun 7 (PTI) FMCG major HUL Chairman and Managing Director Sanjiv Mehta’s gross salary increased by 2.86 per cent to Rs 19.42 crore for 2019-20, according to the company’s annual report for 2019-20.
This is in contrast to 2018-19, when his salary was lowered to Rs 18.88 crore as compared to Rs 19.37 crore in 2017-18.
The company’s managing director, whole-time directors and key managerial personnel together took a gross salary of Rs 37.49 crore, up 2.99 per cent from Rs 36.40 crore in 2018-19.
This includes the gross salary of CMD Mehta, CFO Srinivas Phatak, Executive Director – Supply Chain Pradeep Banerjee, Executive Director – Legal and Corporate Affairs Dev Bajpai and Wilhelmus Uijen, Executive Director – Supply Chain.
Banerjee had ceased to be a whole-time director of HUL from December 31, 2019 and Uijen was appointed as a whole-time director from January 1, 2020.
In 2019-20, Mehta drew a salary of Rs 12.46 crore, along with a bonus (profits in lieu of salary) of Rs 3.31 crore, stock option of Rs 3.20 crore and Rs 0.45 crore as contribution to PF, superannuation and consultancy fees.
His salary was 151.22 times higher than the average ratio of remuneration of HUL employees.
In FY2018-19, Mehta got a salary of Rs 8.80 crore, along with Rs 1.13 crore perks, a bonus (profits in lieu of salary) of Rs 2.73 crore, stock option of Rs 5.79 crore and Rs 0.43 crore as contribution to PF, superannuation and consultancy fees.
HUL has 7,082 permanent employees on the rolls of the company as on 31st March, 2020 and the percentage increase in the median remuneration of employees for the financial year was 4.26 per cent.
According to the company, “average increase made in the salaries of Employees other than the managerial personnel in the financial year was 5.04 per cent”.
“The average increase every year is an outcome of the Company’s market competitiveness as against its peer group companies. In keeping with our reward philosophy and benchmarking results, the increases this year reflect the market practice,” said HUL.
While for the management committee members, HUL, after seeking the approval of the Nomination and Remuneration Committee of the Board, introduced a new grade for the members of the Management Committee, considering the responsibilities and complexity of the roles involved.
“Accordingly, a salary increase in the range of 20-25 per cent was given for certain Management Committee Members, effective February 1, 2020,” it added.
For FY2019-20, HUL’s net profit was up 11.48 per cent at Rs 6,756 crore, over Rs 6,060 crore in the previous year. Its sales stood at Rs 39,136 crore, marginally up 1.44 per cent.