Hindustan Unilever Limited (HUL), the leading FMCG giant, announced that its outgoing CEO and Managing Director, Sanjiv Mehta, received a total compensation of slightly over Rs 22 crore during the fiscal year 2022-23. This figure includes a bonus of Rs 6.3 crore. While the bonus amount saw a significant increase of nearly 50%, the overall growth in Mehta’s compensation remained flat compared to the previous fiscal year.
Under Mehta’s leadership, HUL achieved a remarkable 5% underlying volume growth and an impressive 16% growth in turnover, reaching Rs 58,154 crore in the last financial year. These achievements are a testament to Mehta’s decade-long tenure at the helm of the company, during which he navigated a challenging environment of input cost inflation, ensuring that a majority of HUL’s portfolio gained market share.
As Mehta’s tenure is set to conclude in a month, he will pass on the baton to his successor, Rohit Jawa, effective from June 27, 2023. Jawa, a Singapore national, will assume the role of CEO and MD of HUL. In recognition of his responsibilities, Jawa will receive a total remuneration of over Rs 21 crore, which includes a target bonus of Rs 7 crore.
Sanjiv Mehta’s leadership has been instrumental in guiding HUL through a period of significant growth and market challenges. His ability to drive the company’s performance amidst input cost inflation and intense competition has positioned HUL as a leader in the FMCG sector. Despite a flat growth in his overall compensation, Mehta leaves behind a legacy of sustained success and value creation for the company and its stakeholders.
During Mehta’s tenure, HUL witnessed notable achievements and expansion across various product categories. The company’s focus on innovation, product quality, and consumer-centric strategies has resulted in increased market share and strengthened its position in the industry.
One of Mehta’s significant accomplishments was the successful integration of GSK Consumer Healthcare into HUL’s portfolio, further expanding its presence in the healthcare segment. The strategic acquisition provided HUL with a range of popular brands and strengthened its market position in the health and wellness category.
In addition to driving growth, Mehta also emphasized sustainability and corporate social responsibility initiatives during his tenure. HUL’s commitment to environmental sustainability, diversity and inclusion, and social welfare under his leadership has garnered recognition and accolades from various stakeholders.
As Mehta prepares to step down, Rohit Jawa, with his extensive experience in the consumer goods industry, is well-positioned to lead HUL into the future. Jawa’s remuneration package reflects the company’s confidence in his ability to steer HUL towards continued growth and success.
With a target bonus of Rs 7 crore, Jawa’s total compensation of over Rs 21 crore highlights the significant responsibilities associated with leading one of India’s most renowned FMCG companies. The board’s decision to appoint Jawa underscores its belief in his leadership capabilities and vision for HUL’s future growth trajectory.
In conclusion, Sanjiv Mehta’s tenure as CEO and MD of HUL witnessed remarkable achievements, including substantial growth in turnover and market share. His leadership during a challenging period of input cost inflation ensured the company’s resilience and success. As Mehta passes on the baton to Rohit Jawa, the company looks ahead to a new era under Jawa’s leadership, continuing its commitment to growth, innovation, and sustainability in the FMCG industry.
