Crorepatis in HUL come down by a third in last 4 years due to leaner management structure

The number of crorepatis in Hindustan Unilever has come down from 125 to 113 executives, reports The Economic Times.

Around 113 executives at the country’s largest consumer goods firm took home more than Rs 1 crore in annual salary last fiscal, compared with 169 such managers in 2014-15, according to the company’s annual report. In 2016-17, 125 managers drew eight-digit salaries.

Why are crorepatis in HUL shrinking?

According to experts, HUL workforce is now leaner with lighter top management in each business vertical. “They are now rationalising top management strength with roles expanding, as portfolios get clubbed — be it in finance, categories or marketing,” said R Suresh, founder of boutique search firm INSIST Executive Search.

People drawing eight-digit annual salaries represent about 2 percent of HUL’s total workforce. More than half of them are less than 40 years of age, a nearly 50 percent jump over the previous year.

“There is a push and focus among organisations on giving more responsibilities to people under 40 across businesses: tech, consumer, even manufacturing,” said A Ramachandran, senior partner at search firm EMA Partners International. “With this, commensurately, compensation packages are going up,” he said.

While the number of crorepatis fell, the average percentage increase in the salaries of non-managerial staff at HUL last year at 9.4 percent was much higher than 5.6 percent in the previous fiscal. The company has 5,725 permanent employees on its rolls, and the percentage increase in the median remuneration for FY18 was 4.7 percent.

In its annual report, the company said the salary structure of senior managers is undergoing a change and has been simplified to ensure fewer elements and a clear linkage to employee performance in line with a review done of the reward framework during 2017.