Mumbai: Sanjiv Mehta, MD & CEO, Hindustan Unilever received Rs. 19 crore as salary in financial year 2017-18 which is 36 per cent more than the previous year’ Rs. 14 crore. He also received about Rs. 6 crores as bonus which is nearly three times as compared to the previous year’s as HUL reported 17 per cent growth in its annual net profit under his leadership. The net profit grew by 12 per cent in domestic consumer business as it went to Rs. 5,237 crore.
As per the latest annual report of the one of the leading fast-moving consumer good (FMCG) companies, 4.7 per cent increase was done in the median remuneration of employees for FY18. As on March 31, 2018, HUL has 5,725 permanent employees on its rolls. Apart from the managerial personnel, the average percentage increase made in the salaries of employees in the financial year was 9.4 per cent. The common practice observed is that the average annual increase is the result of the company’s market competitiveness as against its peer group companies.
It is the leadership of Mehta which has helped the company to record the growth in business in a challenging external environment after demonetization and the introduction of GST, enabling growth and improving profitability. With the massive rollout of a range of Ayush products this year, the FMCG Company has also entered into the naturals category to directly take on the threat posed by the likes of Patanjali Ayurveda.
It is expected that Mehta would be given an additional responsibility of chairmanship from next month as Harish Manwani is retiring. With subject to shareholders’ nod, Mehta has been given an extension of five years as MD & CEO by the board of directors. Currently, he is also the executive vice-president of Unilever in South Asia.