ITC crorepati club | 153 managers drew a salary of over a crore this fiscal year, the highest in India!

In a nutshell, ITC Ltd now has a total crorepati tally of 153 executives. ITC, on the other hand, has 96 executives procuring over a crore a year in the FMCG market, compared to 123 executives at HUL.

Indian Tobacco Company Ltd (ITC), a hotel to cigarette agglomerate has overpowered Hindustan Unilever Ltd's (HUL's) in having the most number of managers in its vanity who fetch a salary of more than a crore in the Indian consumer market segment.

In the last fiscal year, around 39 new managers set their foot in the creamy layer and a total of 153 executives were procuring more than a crore pay at ITC.  Whereas in the same year (FY20), HUL saw a marginal tumble to 123 from 129, as per a report released by the Economic Times.

HUL is purely a consumer goods nutrition, hygiene, and personal care brand whereas ITC is a conglomerate of various businesses such as FMCG, chain of hotels, packaging, paperboards, safety-matches, stationary, and agarbatti manufacturing. 

ITC likewise operates India's second-biggest lodging network, the biggest agri-business organization in the private area, and the largest paperboard manufacturer. Every business of ITC has a CEO and is under the guidance of a senior leadership team. 

The surprising element is that HUL had recently joined forces with GSK consumer that prompted the opening up of vacancies for around 3500 employees who then joined the bandwagon. It included 21 managers who were getting paid a salary of more than a crore. Despite this, ITC is leading the leaderboard of having more numbers of crorepati managers.

How did ITC end up achieving such an 'elite' feat?

Most of ITC's gross income and profit comes from its FMCG business. In FY21, the FMGC business drove about 65% of ITC's gross income and 90 percent of total profits. 

• The number of its managers who are now a part of the elite crorepati club saw a salary hike owing to the lateral recruits and competitive spirit as far as remuneration to the key administration workforce is concerned. 
• This occurred after investor British American Tobacco (BAT) cast a ballot against ITC's employee stock option scheme in 2018. ITC rebuilt the compensation structure in 2019, with the full impact of this being seen in FY21 - the expanded pay of ranking directors and the authority, as mentioned by the executives.
• In the financial year 2021, the pay withdrawn by its key administration workforce rose by 51%.
• As per ITC, this increment was the effect of compensation structure being redone and a leap in the number of senior executives and leaders such as chairman and MD Sanjiv Puri, executive directors Nakul Anand, B Sumant, and Rajiv Tandon, chief monetary officer Supratim Dutta, and company secretary RK Singhi. 

In FY21, ITC's Chairman and Managing Director Sanjiv Puri's remuneration increased by 47% to INR 11.95 crore. On the contrary, in the same fiscal year-Hindustan Unilever's Chairman, Sanjiv Mehta actually saw a drop in his pay by 21% to INR 15.36 crore.

The HUL's story 

HUL is renowned as one of India's outstanding training grounds though it has confronted wearing down at senior levels throughout the long term. New businesses, e-commerce organizations, and those eyeing to clutch onto initial public contributions (IPOs) have been encroaching on the top-class talent base of HUL, as said by Abneesh Roy, senior VP at Edelweiss Securities. 

"Talking about ITC, the payout could have been quite better to make up for employee stock options, as it wouldn't be included in the total pay package any longer," he further added.

Over the many years, HUL has witnessed more than 400 CEOs coming to light from the organization. Hence, it is frequently alluded to as a CEO Factory. Many studies point towards the fact that amongst fresh MBA graduates, HUL is the first-choice and one of the most favored organizations.

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