In a remarkable display of financial growth, the net remuneration of ITC’s Chairman and three executive directors witnessed a substantial increase of 45% to 96% in the fiscal year 2023-24. The conglomerate has announced proposals to enhance the remuneration of three directors further starting in October to ensure their pay remains ‘market competitive,’ as detailed in the company’s annual report and the notice for the annual general meeting (AGM).
Sanjiv Puri, the chairman and managing director of ITC, saw his net remuneration escalate by 80% to ₹13.11 crore in FY24, up from ₹7.28 crore in the previous fiscal year. His gross remuneration for the year stood at ₹28.6 crore, reflecting a significant rise driven by performance bonuses, long-term incentives, and commissions, which surged from ₹12.86 crore in FY23 to ₹21.48 crore in FY24.
Among the executive directors, B. Sumant’s net remuneration surged by 85% to ₹6.12 crore, while Supratim Dutta’s remuneration soared by 96% to ₹3.51 crore. Sumant is responsible for ITC’s paperboards, paper, packaging, personal care, education, and stationery products businesses, as well as the distribution vertical. Dutta serves as the chief financial officer, overseeing finance, accounting, internal audit, and IT functions, along with the company’s investment subsidiaries.
For executive director Hemant Malik, who heads the foods business—the company’s second-largest segment after cigarettes—net remuneration increased by 45% to ₹3.07 crore. Malik joined the board in August 2023, following Dutta, who became a director in July 2022.
Despite the substantial pay hikes, ITC did not provide specific reasons for the increased remuneration in its annual report. However, analysts suggest that the rises in Puri’s and the directors’ performance bonuses are linked to the company’s financial performance and the appreciation of ITC’s stock price. ITC’s share price, which hovered around ₹273 in June 2022, reached a 52-week high of ₹499.6 in July last year and closed at ₹424.9 on the BSE last Friday.
Additionally, ITC has expanded its workforce, adding 68 employees earning more than ₹1 crore annually in FY24, bringing the total to 350 such employees. This marks an increase from 282 employees in FY23. The company’s total workforce rose by 3.5% to 24,567 employees. The median remuneration for all employees increased by 5%, while for the CEO and executive directors, it rose by 50% and 60%, respectively. The median salary for top male executives was ₹1.11 crore, compared to ₹1.07 crore for their female counterparts. Overall, female employees received 10% of the total gross wages.
BAT, the largest shareholder of ITC, recently praised the company and its senior management for their impressive growth and future prospects, emphasising the optimistic outlook for the conglomerate.
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