ITC is all set to hike the salary of Sanjiv Puri, chairman and managing director, by at least 45 per cent, with effect from October, 2019 with the approval of the shareholders. As the Indian multinational conglomerate does not have a provision to issue stock options, its three executive directors will also be given an increment of 30 per cent. Puri’s total package will include the annual performance bonus, which will not be more than 300 per cent of the basic salary. The performance bonus for the executive directors will not exceed 200 per cent of the basic salary.
The tobacco company proposes to increase the monthly consolidated salary of Puri from Rs 15 lakh to Rs 22 lakh. The basic salary of the directors – Nakul Anand, B Sumant and Rajiv Tandon – is expected to be increased from Rs 10 lakh per month to Rs 13 lakh per month.
The executive compensation has been restructured because there is no option to introduce another equity-based long-term incentive scheme, and the stocks that remain under the stock option schemes are limited.
The revision has taken into consideration the role of Puri as the chairman, post the death of non-executive chairman, YC Deveshwar.
The salaries of other employees, eligible for stock options, were already revised earlier.