The board of ITC Limited has recommended the reappointment of Sanjiv Puri as the company’s chairman and managing director for a second term of five years.
Photograph: Amit Dave/Reuters
The resolution seeking his reappointment as chairman and managing director of the diversified conglomerate will be put to vote at the company’s annual general meeting to be held on August 11, 2023, according to a notice sent to the shareholders on Tuesday.
The company under Puri drove the ‘ITC Next’ strategy in the last four years encompassing digital acceleration, cost optimisation, investing in new growth vectors and ensuring supply chain agility, its officials said.
Revenue from the company’s FMCG segment has grown from Rs 12,500 crore to Rs 19,123 crore during the period and segment EBITDA margins improved by 7.7 per cent between 2016-17 to 2022-23.
Its other verticals like hotels, agri-business, paperboards, paper and packaging also registered improved performance in the last four years, they added.
Puri’s total salary rose 53% to Rs 16.31 crore in FY23
The total remuneration of Puri was increased 53.08 per cent to Rs 16.31 crore for financial year 2022-23.
Puri drew a basic salary of Rs 2.88 crore, perquisites and other benefits of Rs 57 lakh and a performance bonus/ long-term incentives/ commission of Rs 12.86 crore from ITC for 2022-23.
A year ago, Puri’s total remuneration was Rs 10.66 crore, which included a basic salary of Rs 2.64 crore, perquisites and other benefits of Rs 49.63 lakh.
However, his performance bonus/ commission was Rs 7.52 crore only in FY22.
During the annual general meeting scheduled for August 11, ITC has proposed a resolution for re-appointment of Puri as a director and also as managing director & chairman for five years or till such earlier date to conform with the policy on retirement from July 22, 2024.
Puri was appointed as managing director of ITC on July 22, 2019, and his present term will end on July 21, 2024.
After Puri, Nakul Anand is the second highest-paid employee of ITC with a total remuneration of Rs 8.18 crore for FY23.
He is followed by B Sumant with Rs 7.58 crore.
Anand oversees the hospitality and travel & tourism businesses of ITC, while Sumant oversees the paperboards, paper and packaging as well as the personal care and education & stationery products businesses of the company.
According to ITC, “Remuneration of KMPs (Key Managerial Personnel) increased by 28 per cent due to impact of revision in remuneration and payment of long-term incentives during the year.”
Moreover, the number of persons drawing a salary of more than Rs 1 crore per annum was over 245 in FY23. In FY22, the number of such employees was around 220.
Compared with financial year 2021-22, the median remuneration of employees has decreased 3 per cent, while the average remuneration of employees has increased by 6 per cent.
Puri’s ratio of remuneration to the median remuneration of all employees is 326:1.
As on March 31, 2023, the total number of permanent employees in ITC was 23,725.
