New Delhi: FMCG major Hindustan Unilever managing director and CEO Sanjiv Mehta received a pay package of Rs14.20 crore for the last fiscal, even with no increase in his salary from the previous year.
HUL chief financial officer P.B. Balaji took home a salary of Rs8.33 crore for the period under review, although he also did not get any raise in 2016-17. According to the company’s annual report, the ratio of compensation of Mehta to median renumeration of employees stood at 138.44% and that of Balaji at 81.36%.
However, HUL executive director, supply chain, Pradeep Banerjee and executive director, legal and corporate affairs and company secretary, Dev Bajpai received hikes of 8% each in their salaries and took home Rs4.75 crore and Rs4.69 crore, respectively. In the case of Banerjee and Bajpai, the ratio of their salaries to median renumeration of employees was at 46.48% and 45.93%, respectively.
Stating that the increase reflected the market practice, HUL said: “The renumeration paid during the year is as per the renumeration policy of the company.” However, the percentage increase in the median remuneration of the company’s employees for the financial year was 3.42% only. The company had 5,976 permanent employee on its roll as on 31 March 2017. Average percentage increase made in the salaries of the employees other than the managerial personnel in FY2016-17 was 5.57% whereas the increase in the managerial remuneration was 3.1%.
The average increases every year is an outcome of the company’s market competitiveness as against its peer group companies, the company said.