According to the annual report for 2019-20 of FMCG major, Hindustan Unilever (HUL), the gross salary of Sanjiv Mehta, the Company’s chairman and managing director, has been increased by 2.86 per cent in 2020. From the earlier Rs 18.88 crore in 2018-29, it has been hiked to Rs 19.42 crore for 2019-20. Interestingly, the gross salary was Rs 19.37 crore in 2017-18.
As per the details provided by the report, 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.
As compared to the average ratio of remuneration of total number of HUL staff; counting up to 7,082 permanent employees on the rolls of the company as on March 31, 2020, Mehta’s salary was 151.22 times higher.
According to the management, the average hike in the salaries of employees other than the managers in the financial year was 5.04 per cent.
Every year, the average hike is a result of the Company’s market competitiveness as compared to its peer group companies. This year too, the hikes are reflective of the market practice, in alignment with the Company’s reward policy.
The net profit of HUL for FY2019-20, increased to Rs 6,756 crore, from Rs 6,060 crore in last financial year. Sales, on the other hand, increased marginally, by 1.44 per cent and stood at Rs 39,136 crore.