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HUL proposes raising annual pay cap for non-executive directors to ₹15 cr
Sentiment: NeutralHigh Priority
What Happened?
Hindustan Unilever Ltd (HUL) has proposed increasing the annual pay cap for non-executive directors to ₹15 crore or 1% of net profit, whichever is lower, starting April 1, 2026. This proposal will be voted on by shareholders via postal ballot.
Key points
- The current pay cap is ₹4 crore, raised from ₹3 crore in June 2024.
- The proposed limit will be effective until March 31, 2031.
- Remuneration will follow Section 198 of the Companies Act, 2013.
- Shareholders eligible to vote must be registered by November 6, 2026.
- S N Ananthasubramanian has been appointed as the scrutiniser for the ballot.
Key insights
- If approved, the increase may attract more experienced directors to HUL.
- The change reflects HUL's strategy to align director compensation with company performance.
- This proposal may set a precedent for other companies in the sector.
Why it matters
This proposal could impact the compensation structure for non-executive directors, influencing corporate governance.
Entities
Hindustan Unilever Ltd· CompanyS N Ananthasubramanian· Person
Source
Business Standard
