People earning eight-digit salaries annually represent around 2% of the entire staff of Hindustan Unilever. More than half of below 40 years of age which is nearly more than 50% as compared to previous year.
India’s largest consumer goods firm Hindustan Unilever’s crorepati club has shrunk by a third over the past four years, because of their management structure being lean and the the option of selling shares used by lesser people. According to the company’s annual reports, about 113 executives of the firm took home over ₹1 crore in annual salary last fiscal year as compared to 169 such managers in 2014-15. In the year 2016, 125 managers procured eight-digit salaries.
Changing Organisation Structure
Reportedly, the makers of Close Up toothpaste, Dove soap, and Fair & Lovely skin creams is now leaner with the top management being lighter in each business vertical. Founder of boutique search firm INSIST Executive Search, R Suresh said that the company is rationalizing the strength of the top management with roles expanding, as portfolios get clubbed — be it in finance, categories or marketing. However, the company claims that they ensure that its employees are paid market competitive salaries according to an HUL spokesperson. The person also adds that the remuneration paid out to the employees is in line with the reward policies and it is inappropriate to do year-on-year as compared to the number of individuals earning above a certain range or the actual remuneration figures given the multitude of variables impacting the same.
Notably, the salaries of non-managerial staff of the company last fiscal was at 9.4% which was much higher than 5.6% in the previous year. There are 5,725 permanent employees in the company and the percentage increase of the average income for fiscal year 2018 was 4.7%. The managing director of HUL Sanjiv Mehta’s salary increased at ₹19.5 crore last fiscal, which was 170 times the average income of the employees. The company stated that the salary structure of the senior management has undergone a change and has is being simplified in order to ensure fewer elements and a clear connection of an employee’s performance with 2017’s review of the reward framework.