A year after taking a cut in his salary, Adi Godrej, chairman of Godrej Consumer Products (GCPL), has seen a significant pay hike for fiscal 2014, the company’s latest annual report shows.
For FY14, Godrej’s remuneration, including salary, provident fund, gratuity, performance-linked incentives and perquisites stood at Rs 9.45 crore, up 39% over the year earlier. This is in contrast with the 8.6% pay cut that Godrej took in fiscal 2013, when his remuneration stood at Rs 7.43 crore.
The pay cut in fiscal 2013 was to manage costs at a time when inflation was running high, and a slump in demand was impacting the operational performance of consumer product companies, according to an analyst who tracks the company. In fiscal 2014, GCPL’s revenues grew 18.21% to Rs 7,665 crore. Its net profit for the year declined marginally at Rs 759 crore.
Indian companies have been rewarding their top executives handsomely of late.
N Chandrasekaran, MD and CEO of TCS, received a 60% pay hike in FY14 at Rs 18.68 crore; while, Koushik Chatterjee, group executive director of finance and corporate at Tata Steel got a 26.5% rise in remuneration at R5.06 crore.