ITC Sees Surge In Employees Earning Over 1 Crore By 24.11% In FY24

The increase in the number of executives earning in the eight-figure bracket underscores the extensive scale of ITC’s operations and its expansion into new product categories

The average employee remuneration increased by 9 per cent, while the median employee remuneration rose by 5 per cent ( Image Source :ITC )

The cigarettes-to-hotels conglomerate ITC saw 68 executives join the crorepati club in FY24, marking a 24.11 per cent increase from FY23. According to the company’s latest annual report, the total number of executives earning an annual remuneration exceeding Rs 1 crore was 350 in FY24.

The total includes employees who received compensation amounting to Rs 8.5 lakh or higher per month and were employed for a portion of the fiscal year that ended on March 31, 2024. In the preceding fiscal year, FY23, the count of employees earning more than Rs 1 crore stood at 282. This marked an increase of 62 from FY22, representing a growth of 28 per cent.

The increase in the number of executives earning in the eight-figure bracket underscores the extensive scale of ITC’s operations and its expansion into new product categories.

According to the company's annual report, its remuneration policy is described as "market-led," taking into account the competitive environment of each business segment. Performance related to the company’s sustainability goals is also critical in determining compensation.

The chairman and other executive directors are eligible for performance bonuses each financial year, capped at 300 per cent and 200 per cent of their basic/consolidated salary, respectively. The board determines these bonuses based on recommendations from the Nomination and Compensation Committee.

ITC's chairman and managing director, Sanjiv Puri, saw his gross remuneration increase by 50 per cent to Rs 28.62 crore. In addition, the remuneration of key management personnel (KMP) rose by 59 per cent, attributed to the disbursement of long-term incentives throughout the year and the temporary addition of executive directors.

Excluding KMP, the average employee remuneration increased by 9 per cent, while the median employee remuneration rose by 5 per cent. As of March 31, 2024, ITC employed 24,567 permanent staff members.

ITC, which operates in various sectors, including cigarettes, FMCG, hotels, agribusiness, paperboards, paper, and packaging, achieved consolidated revenue of Rs 76,840.49 crore in FY24, reflecting a marginal increase of 0.42 per cent. The company's net profit grew 6.6 per cent to Rs 20,458.78 crore.