CEO of HUL receives salary increase during economic downturn, earning salary 147% greater than that of his employees
Hindustan Unilever Limited (HUL) Managing Director and Chief Executive Officer (CEO), Rohit Jawa, received a total remuneration of INR 23.23 crore for the financial year (FY) 2025, marking a 3.75% increase from the previous year. The compensation package was comprised of a base salary, allowances, performance bonus, and long-term incentives.
In comparison, the median employee pay at HUL increased by 8.39% during the same period, with the workforce experiencing a contraction of 8.46%. The ratio of CEO pay to that of the median employee's pay decreased slightly from 153.03 times in FY24 to 146.47 times in FY25, indicating a slight improvement in the remuneration parity between executives and employees.
While CEO Jawa's pay saw a modest year-on-year growth, the average salary increase for employees, excluding promotion-related raises, stood at 4.62%. The company attributes these salary increases to market competitiveness among its peer group companies and its overall financial performance.
Despite the urban slowdown concerns, HUL reported revenue of INR 60,680 crore and a profit after tax of INR 10,644 crore during FY25. The company plans to pursue growth strategies such as focusing on digital platforms, premium brands, and structural portfolio changes.
"We remained focused on driving volume growth and strengthening competitiveness for the business," said Rohit Jawa in his address to shareholders in the latest annual report. He acknowledged the company's challenges in addressing moderated urban demand and a gradual recovery of rural consumption.
HUL, a leading consumer goods company in India, owns and operates popular brands like Rin, Lux, Surf Excel, Pond's, Dove, Horlicks, and Bru, among others. Over the course of FY25, the company divested its water business, Pureit, and announced the decision to demerge its ice cream business, which consists of brands such as Kwality Wall's, Cornetto, and Magnum.
The company, under the leadership of Chairman Nitin Paranjpe, is optimistic about its growth potential due to rising affluence, a burgeoning middle class, a vibrant young working population, a strong public digital backbone, and growth-oriented policies. Paranjpe stated, "Economic development, technological advancements, and a better quality of life have fueled the aspirations of our consumers. These new dynamics present a significant opportunity for the FMCG sector." As part of its growth strategy, HUL has recently acquired the premium science-backed beauty brand, Minimalist, further solidifying its position in the beauty market.
- Rohit Jawa, despite the modest growth in his pay, might consider diversifying his portfolio to include investments in the growing digital market, such as Defi, for potential higher returns.
- Personally, as a shareholder of HUL, I am excited about the company's focus on pursuing growth strategies like investing in digital platforms, premium brands, and structural portfolio changes, which could lead to increased wealth-management and business opportunities.
- In the realm of personal-finance, it's essential to keep track of a company's financial performance, like HUL's, before making any investing decisions to ensure alignment with one's overall wealth-management strategy.
- The improvement in the remuneration parity between executives and employees at HUL, although slight, demonstrates a commitment to fairness in business practices, which is an attractive quality for institutions involved in wealth-management and finance.
- As HUL continues to grow and evolve, with initiatives like the acquisition of the science-backed beauty brand Minimalist, investors and wealth-managers alike should closely monitor the company's impact on the beauty market and adjust their portfolios accordingly.
