Colgate Plans Toothsome Pay Packet For Md
Colgate shareholders will consider and vote on these proposals at the company's 55th annual general meeting in Mumbai on September 19.
If approved, Trigwell will become one of the country's highest paid executives with an annual salary ceiling of Rs 65 lakh.
His previous ceiling was Rs 24 lakh. Keshwani's ceiling will move up from Rs 18 lakh to Rs 24 lakh.
Trigwell's ceiling is even higher than that of K B Dadiseth, Hindustan Lever's (HLL) new chairman. In June this year, Lever hiked managerial remuneration by 50 per cent, apart from the usual benefits and perquisites.
Dadiseth receives Rs 45 lakh per annum, while vice-chairman, R Gopalakrishnan gets Rs 40 lakh. The other Lever directors get Rs 36 lakh annually.
ITC chairman, Yogi Deveshwar, gets paid Rs 24 lakh per annum, which can be increased to Rs 33 lakh.
This, however, does not include other perquisites like performance linked bonus, not exceeding 20 per cent of consolidated salary.
Other companies who pay higher than Colgate include Escorts, whose chairman and managing director, Rajan Nanda, in 1995-96 received a net salary of Rs 1.58 crore and vice-chariman and managing director, Anil Nanda, Rs 1.52 crore.
In the notice to the shareholders, Colgate explains the resolution proposing the hikes as only an enabling provision with a view to gain flexibility in this matter in the emerging competitive environment and the board may, in its discretion, pay to Trigwell and Keshwani lower than the maximum specified above.
The company had changed the salary ceilings twice in the recent past, in September 1995 and September 1994.
A Colgate spokesman said the hugeincrease is necessary as salary levels for all management professionals are increasing.
Restrictions on managerial remuneration were removed by the government three years back.
The only checks now are the company should be profitable and such remuneration should be within 5 or 10 per cent of the net profits as stipulated in Section 309 of the Companies Act. Colgate in 1995-96 made a net profit of Rs 77.58 crore against Rs 71.79 crore for 1994-95.
It posted sales of Rs 850.11 crore against Rs 681.46 crore during the same period.