HUL, ITC, and USL now have 432 officials earning more than Rs 1 cr a year

The number of executives earning more than Rs 1 crore per annum in three companies, namely, Hindustan Unilever (HUL), ITC and United Spirits (USL), has increased by 130 in the last year alone, an Economic Times report stated. Currently, HUL has 163 employees earning over Rs 1 crore. ITC and USL currently have 220 and 49 such employees, respectively.

The report added that in the last fiscal, FY22, the number of such executives rose by 33 per cent, 44 per cent and 113 per cent in HUL, ITC and USL, respectively.

HUL is the largest FMCG company in India. ITC, on the other hand, is the largest producer of cigarettes, agriculture as well as paper products, including registers. USL is India's largest spirits company and produces brands like Johnnie Walker and McDowell's whisky.

The phenomenon has been attributed to the increasing resignations in the top companies for better remuneration and benefits. This has led to a higher rise in the average compensation of senior employees compared to the other employees.

At ITC, the average salary of a top-level executive rose by 8 per cent, while all employees' salaries increased by 7 per cent in FY22.

Due to a crunch in the number of senior executives available, the cost of hiring employees has increased significantly. The report stated that companies are paying more than the pre-pandemic levels to retain talent. Senior officials are opting to change their companies for higher compensation and better work conditions.  

The report also highlighted tough competition for companies and start-ups to hire people from HUL. Several top officials have left the company and joined other FMCG companies recently. Among these is Sudhir Sitapati, former executive director of foods and refreshments at HUL, who has joined Godrej Consumer Products as the managing director. Prabha Narasimhan, former executive director at HUL, has joined Colgate Palmolive as the managing director of India.