FMCG major Hindustan Unilever’s (HUL) chairman and managing director (CMD) Sanjiv Mehta took home a gross salary of Rs 18.88 crore in the 2018-19 financial year as compared to Rs 19.37 crore in the previous year.
The company’s managing director, whole-time directors and key managerial personnel together took a gross salary of Rs 36.40 crore, up 3.88 percent from Rs 35.04 crore in 2017-18.
This includes the gross salary of CMD Mehta, chief financial officer (CFO) Srinivas Phatak, executive director – supply chain Pradeep Banerjee and executive director – legal and corporate affairs Dev Bajpai.
In the last fiscal, 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, the stock option of Rs 5.79 crore and Rs 0.43 crore as contribution to PF, superannuation and consultancy fees.
In 2017-18, Mehta took home a salary of Rs 6.96 crore, along with perks of Rs 1.02 crore, a bonus of Rs 5.58 crore, the stock option of Rs 5.43 crore and Rs 0.38 crore as a contribution to PF, superannuation and consultancy fees.
Although HUL reported an EBITDA of Rs 8,500 crore, its highest ever at 22.9 per cent and profit crossed Rs 6,000 crore mark for the first time in 2018-19, Mehta’s bonus dropped 51.07 per cent to Rs 2.73 crore as against Rs5.58 crore in 2017-18.
According to HUL’s annual report for 2018-19, it has 5,645 permanent employees on its rolls as on March 31, 2019. Its increase in the median remuneration of employees for 2018-19 was 4.2 percent as against 4.7 percent in 2017-18.
The average increase made in the salaries of employees other than the managerial personnel in the last fiscal was 7 percent whereas the target increase in the managerial remuneration was 6 percent.
“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 increase this year reflects the market practice,” said HUL in the annual report.
In 2017-18, the average percentage increase in the salaries of employees other than the managerial personnel was 9.4 percent.
Over the outlook, HUL said it expects a stable demand in the ongoing fiscal helped by government initiatives such as increases in minimum support prices but the challenge of an expected below-normal monsoon will have to be navigated.
Besides, HUL expects premiumisation of products to continue in FMCG helped by “secular trends of young population, growing affluence, rising urbanisation and burgeoning digital connectivity”, which would enhance spending patterns of consumers.
In 2018-19, HUL reported a revenue of Rs 38,224 crore.