What Rohit Jawa, HUL's Incoming CEO, Will Be Paid In FY24
Jawa is set to take over as managing director and CEO of the largest consumer goods company in less than a month.
Rohit Jawa, the incoming chief executive officer of Hindustan Unilever Ltd., will take home an annual salary of Rs 21.43 crore this fiscal.
The incoming CEO's remuneration includes a fixed pay, allowances, and target bonus of Rs 7.14 crore each, the company's annual report said. On top of Rs 21.43 crore, he has also been offered Rs 4.83 crore as mobility-linked allowances and other perquisites such as company-leased housing, a car, and a club facility up to Rs 3 crore a year.
Sanjiv Mehta, the outgoing CEO and managing director, took home a total remuneration of Rs 22.36 crore in the year ended March 2023, mainly on account of a 50% jump in bonus at Rs 6.3 crore, according to the annual report. Overall compensation was flat as compared with the previous fiscal's Rs 22.07 crore, a 47% rise from Rs 15 crore in FY21.
Jawa and Mehta's compensations are not comparable because of one-time payouts for the new CEO. Jawa's pay is also subject to shareholder approval.
Jawa is set to take over as managing director and CEO of India's largest consumer goods company in less than a month's time. Mehta retires on June 26 after a decade-long stint.
HUL delivered 5% underlying volume growth and 16% growth in turnover to Rs 58,154 crore in FY23, the last financial year under Mehta's leadership.
"The growth was significantly ahead of the market, leading to handsome market share gains," said Mehta, in his last remark as CEO while addressing the company's shareholders.
Mehta has been credited with navigating a tough macroeconomic environment marked by geopolitical uncertainties, high commodity inflation, and a slowdown in consumer spending. "As economic activities normalised after a couple of years of the pandemic, in a high inflationary environment, we witnessed consumers prioritising essentials over discretionary spend," he said.
Mehta's salary last year was 164 times higher than that of the average HUL employee, the report said.
The Dove soap and Kissan Jam-maker had 6,697 permanent employees as of March 31, 2023, as compared with 8,480 a year earlier. It was clarified that this year's employee count includes those working for HUL only, while last year's reported number included employees working with subsidiaries and group companies as well. In FY23, the percentage increase in the median remuneration of employees was 10.73%, the company said.