ITC Ltd has shattered Hindustan Unilever Ltd's (HUL's) record for most number of employees, who collect Rs 1 crore-plus salaries in the Indian consumer market segment.
In FY21, as many as 153 ITC employees earned Rs 1 crore-plus salaries. ITC had 39 new crorepati managers in FY21, while HUL saw its number of crorepati employees go down from 129 to 123, as per the annual reports of both the firms, reported The Economic Times.
The number of crorepati HUL managers declined even as the FMCG major had merged with GSK Consumer, thereby adding 3,500 employees to its workforce. The firm added 21 managers, with Rs 1 crore-plus salaries.
While HUL is an FMCG firm, ITC is a conglomerate with consumer goods as one of its businesses. Apart from a catalogue of FMCG products, ITC also operates one of India's leading hotel chains, it also owns the largest agri-business firm in the private sector as well as the biggest paperboard maker, the daily reported.
Every one of ITC's businesses has its own CEO and senior executive team. Within its FMCG business alone, ITC has 96 managers, who are earning over Rs 1 crore a year.
The majority of ITC's gross revenue and profit comes from its FMCG business. In FY21, 65 per cent of ITC's gross revenue and 90 per cent of profits came from the FMCG business.
Within the conglomerate, the number of crorepati employees jumped because of lateral hiring and the ITC being competitive in terms of the compensation offered to its key management personnel.
As per ITC, in FY21 the remuneration offered to its key management personnel rose 51 per cent. ITC said this increase was due to the impact of remuneration being revamped and a jump in the number of senior executives.
Chairman and Managing Director Sanjiv Puri's remuneration alone went up by 47 per cent to Rs 11.95 crore last fiscal. While HUL Chairman Sanjiv Mehta actually saw his compensation decline by 21 per cent in FY21.
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