The annual remuneration of ITC Chairman and Managing Director, Sanjiv Puri, rose 47 per cent in FY21, because the full-year affect of his revised pay construction got here into impact.
Puri’s gross remuneration for the yr ending March 31, 2021, stood at Rs 11.95 crore, which incorporates fundamental consolidated wage of Rs 2.64 crore, efficiency bonus and long-term incentives/fee of Rs 6.98 crore and different perquisites. Much of the rise was on account of efficiency bonus and long run incentives.
In FY20, his gross remuneration was at Rs 7.6 crore (the determine doesn’t embrace contribution to permitted pension funds). Puri’s remuneration was permitted by shareholders in September 2019 and was efficient October 2019. The FY20 remuneration had thought of the elevated pay solely partially.
In 2019, ITC modified the remuneration construction of its key administration personnel after its single largest shareholder, British American Tobacco (BAT), determined to not help the corporate’s proposal to proceed with the equity-linked Employee Stock Option Scheme (ESOP) in 2018, on grounds of stake dilution.
Historically, ITC used a mixture of remuneration and the equity-linked ESOP scheme for retaining and attracting expertise. The firm’s Nomination and Compensation Committee then restructured the compensation of key managerial personnel, together with the chairman and managing director and whole-time administrators, which was permitted by shareholders by way of postal poll on September 23, 2019.
As per the phrases of the decision, the annual worth of long run incentives for Puri was to not exceed 0.10 per cent of the web profits of the corporate for the instantly previous monetary yr. While recommending the remuneration of Puri, the committee additionally took into consideration the enlarged function of chairman of the corporate with impact from May 13, 2019.
In FY20, the corporate’s profit after tax had grown by 21.4 per cent to Rs 15,136.05 crore on the again of a discount in company revenue tax charges throughout the yr.
In FY21, revenues and profits had been impacted by the Covid-19 pandemic within the fourth quarter; gross income at Rs 48,151.24 crore elevated by 3.9 per cent, whereas profit earlier than tax (earlier than distinctive objects) at Rs 17,164.15 crore dropped by 11.1 per cent over the earlier yr whereas profit after tax stood at Rs 13,031.64 crore.