FMCG major Hindustan Unilever Ltd (HUL) Chairman and Managing Director Sanjiv Mehta's remuneration dropped 2.52% in FY19 due to a cut in bonuses for the financial year. Mehta earned a gross salary (total remuneration) of Rs 18.88 crore in 2018-19 (FY19) as compared to Rs 19.37 crore a year earlier (FY18), HUL's FY19 annual report released on Monday showed. Meanwhile, there was an increase of 36.4% in the FY18 remuneration over FY17.
Mehta's FY19 compensation break up included Salary - Rs 8.8 crore, perks - Rs 1.13 crore, profits in lieu of salary- Rs 2.73 crore, stock options - Rs 5.79 crore, PF, superannuation and consultancy fees - Rs 43 lakhs. The FY18 break up comprised Salary - 6.9 crore, perks - Rs 1.02 crore, profits in lieu of salary - Rs 5.58 crore, stock options - Rs 5.43 crore, PF, superannuation and consultancy fees - Rs 38 lakhs.
While his salary, allowances, perquisites and Provident Fund contribution increased by 26.43%, 7.28% and 13.15% each from FY18, his bonus decreased to Rs 2.73 crore in FY19 from Rs 5.58 crore in FY18. The company gave no reason for the almost halved bonus figure of Mehta.
HUL also raised its managerial staff's salary by 6% for the year. However, Mehta despite the decline in his salary earned 194 times the median remuneration of employees in the company for FY19.
HUL on May 3 reported a 15.98 per cent growth in consolidated net profit at Rs 6,060 crore for the financial year ended March 31, 2019, as compared to Rs 5,225 crore in the last fiscal.
"Consolidated revenue for 2018-19 stood at Rs 39,860 crore, up from Rs 36,622 crore a year earlier," the company said in a filing to the Bombay Stock Exchange.
HUL's business in India grew by 12 per cent, driven by 10 per cent volume growth in the domestic market.
In the January-March quarter, the company posted a 13.84 per cent growth in its standalone net profit at Rs 1,538 crore as compared to Rs 1,351 crore in the same quarter last year.
The sales of the company stood at Rs 9,809 crore in Q4FY19 from Rs 9,003 crore in Q4FY18, registering a growth of 8.95 per cent.
The operating profit (EBITDA) for the March quarter was up 13 per cent year-on-year at Rs 2,321 crore and EBITDA margin was up 90 bps.
The company said that margin improved due to prudent management of volatility in costs (crude and currency led) along with improved mix and operating leverage.
Commenting on earnings, Mehta said, "We have delivered a strong performance for the quarter despite some moderation in rural market growth. Our focus on strengthening the core and leading market development has been consistently delivering good results. We have now grown top line and bottom line for the eighth consecutive year and our 2019 results are a testament to both our strategy and execution."
"Given the macro-economic indicators, near-term market growth has moderated. However, medium-term outlook stays positive. As an organisation, we are well-positioned to respond with speed and agility to meet the needs of our consumers. We remain focused on our strategic agenda of delivering consistent, competitive, profitable and responsible growth," he added.
The company's board has proposed a final dividend of Rs 13 per share on face value of Rs 1 each, subject to the approval of the shareholders at the AGM. "Together with the interim dividend of Rs 9 per share, the total dividend for the financial year ending March 31, 2019 amounts to Rs. 22 per share," the company said.