HUL President Sanjiv Mehta sees paycheck shrink by 21% in tough year
Sanjiv Mehta, Chairman and CEO of Hindustan Unilever, the country’s largest consumer goods company, saw his annual compensation drop 20.9% to Rs 15.36 crore in the fiscal year ended March 31 2021 (FY21).
Compensation includes salary and allowances, bonuses, perquisites and contribution to the provident fund and pension fund, according to the latest annual report of the company. Details regarding the payment of stock options to key executives were not provided in the annual report.
Human resources experts said challenges related to Covid were among the main reasons for Mehta’s pay drop. In her statement to shareholders, Mehta said the pandemic is having a significant impact on lives, livelihoods and business.
“Operational challenges have increased due to restricted movement and disruption of supply lines during the first months of the pandemic. As the second wave of the pandemic unfolds with forecasts of a third wave, we continue to focus on the health and safety of our population, ensuring continuity of supplies for a relevant portfolio for Covid and meeting demand. arising from changing consumer needs, ”he said.
The impact of the pandemic can also be seen on the total compensation of key senior executives.
The company’s four top executives, including Mehta, CFO Srinivas Phatak, Executive Director (Legal and Corporate Affairs) Dev Bajpai and Executive Director (Supply Chain) Wilhelmus Uijen, together earned a total compensation of 36, Rs 13 crore in FY 21. This was down 3.63 percent from FY20, when executives took home Rs 37.49 crore.
Yet compared to the median paycheck for HUL employees in FY21, the payout to senior executives at the company is high.
Mehta’s pay, for example, was 122 times the median employee salary; Phatak was almost 57 times higher; Bajpai’s was almost 44 times, while Uijen’s was 65 times.
HUL reported revenue of Rs 45,311 crore, a growth rate of 18.38 percent from the previous year. Profit for the year also increased by 18% to Rs 7,954 crore compared to the period of the previous year.
The average increase in non-managerial salaries for FY21 was 3.4%, HUL said. The company had 8,525 permanent employees in the year under review.
In light of the business disruption triggered by the pandemic, HUL presented a special cash award to its frontline sales force and factory workers in FY21 to recognize their discretionary effort.
“This has been a difficult year for all of our employees, especially those on the front lines and factories, as they have strived to serve the nation by ensuring that our production and distribution of essential products runs smoothly.” , HUL said.
Mehta said significant changes were visible in consumer buying behavior, including the growth of online shopping due to growing concerns about health, hygiene, sanitation and nutrition.