BackITC’s Sanjiv Puri sees 47% jump in FY21 salary, perks
Puri’s remuneration for the last fiscal includes basic salary of ₹2.64 cr, a performance bonus and long-term incentives of ₹6.98 cr apart from perquisites and other benefit components of ₹48 lakhHis salary increase was on account of a revised structure announced in 2019, the effect of which was seen for the full year in 2020
PremiumNew Delhi: Kolkata-based ITC Ltd., increased chairman and managing director Sanjiv Puri’s total remuneration in FY21 by 47% to ₹10.10 crore. Puri’s salary increase was on account of a revised structure announced in 2019, the effect of which was seen for the full year in 2020.
Puri’s remuneration for the last fiscal includes basic salary of ₹2.64 crore, a performance bonus and long-term incentives of ₹6.98 crore apart from perquisites and other benefits components of ₹48 lakh, according to information made available in the company’s Report and Accounts for the financial year ended 31st March 2021 released late Tuesday night.
In FY 2019-20 Puri’s total remuneration stood at Rs6.86 crore.
In 2019—the company had announced that it is set to restructure remuneration of some key personnel including Puri over limited availability of stock options under Employee Stock Option Scheme or ESOPS available to the company. The committee and the board, while recommending revision to Puri's remuneration, also took into account his larger role as company chairman effective 13th May 2019.
Historically, ITC’s remuneration structure has been a mix of salary and ESOPS.
The move came after British American Tobacco (BAT), a shareholder in ITC, decided not to support the company’s proposal to continue the ESOP Scheme in 2018 to avoid dilution of BAT’s shareholding in the company.
This prompted ITC’s nomination and compensation committee to restructure compensation of key managerial personnel including the chairman and managing director and the whole-time directors. The same was approved by the shareholders of the company through postal ballot on 23rd September 2019, effective 1st October 2019 onwards.
As a result, Puri’s remuneration for FY 2019-20 considered the increase in remuneration only for part of the year, whereas his remuneration for FY 2020-21 took into account the effect for the entire year.
Puri an alumnus of the Indian Institute of Technology, Kanpur, and Wharton School of Business was appointed chief executive officer of the hotels-to-cigarettes conglomerate in February 2017. He was re-designated as the managing director of the company in May 2018. He was also appointed as chairman effective May 13, 2019.
In FY 2020-21, ITC’s gross revenue stood at Rs48,151.24 crores up 3.9% from the year ago period, it reported a profit after tax of Rs13,031.64 crores. The company has over 26,000 employees.
In its annual report for FY21 ITC said that the operating environment during the year was rendered extremely challenging by the outbreak of the pandemic, which caused unprecedented disruptions across the company’s operating segments.
“Your company responded with agility and speed in adapting to the ‘new normal’ by resuming operations expeditiously and launching innovative products in record time to address emergent consumer needs. Your company also formed strategic partnerships, deployed innovative delivery models and enhanced usage of digital technologies for efficient market servicing," it said.
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