The FMCG major has announced the appointment of Nitin Paranjpe, currently chief operating officer of Unilever, as the non-executive chairman of the company. Sanjiv Mehta will continue as CEO & MD.
“The nomination & remuneration committee (NRC) of the HUL board recommended his (Paranjpe) appointment to the board. The board accepted the recommendation made by the NRC and has appointed Paranjpe as a non-executive chairman. The appointment is subject to the approval of the shareholders, which the company will seek as per applicable regulations,” HUL said in its release.
As announced by Unilever in January, Paranjpe will take on a new role as chief transformation officer & chief people officer, leading the business transformation and heading the HR function for Unilever effective April 2022. He is also a member of the Supervisory Board of Heineken NV.
Sanjiv Mehta, chairman & managing director of HUL, said: “We welcome Nitin back to HUL as the non-executive chairman. He brings in huge knowledge and experience which will enrich the deliberations and add value to the board.”
Mehta also thanked the board for their support rendered to him during his tenure and added: “It has been an honour to have led the HUL board over the past few years.”
Paranjpe said: “I look forward to working closely with Sanjiv and the board to further strengthen the company and help navigate the challenges and opportunities in the years ahead.”
This move by HUL comes despite the capital market regulator, Securities and Exchange Board of India (SEBI), not making it mandatory for listed companies to split the position of chairperson and CEO & MD positions.
SEBI had earlier asked listed entities to split the roles of chairperson and MD before the April 2022 deadline. Listed entities were initially required to separate the roles of chairperson and MD & CEO from April 1, 2020. However, based on industry representations, an additional time period of two years was given for compliance. The norms were part of the series of recommendations given by the Sebi-appointed Uday Kotak committee on corporate governance.