World · India Bureau
HUL seeks shareholder nod to triple non-executive director pay ceiling
Hindustan Unilever Limited has proposed a significant increase in the annual remuneration cap for non-executive directors, aiming to raise the ceiling from ₹4 crore to ₹15 crore or 1 per cent of net profit, whichever is lower.
LSN India ·
The consumer goods major has put forward the proposal for shareholder approval, signalling a substantial shift in its compensation framework for board members who do not hold executive positions. The move would effectively triple the existing remuneration limit that has been in place for the company's non-executive directors.
Under the revised structure, the annual pay cap for non-executive directors would be determined by whichever figure is lower between ₹15 crore and 1 per cent of the company's net profit. This dual-threshold mechanism aims to ensure that director compensation remains proportionate to the company's financial performance while providing flexibility in recruitment and retention of board talent.
The proposal reflects broader industry trends as major corporations reassess their governance frameworks and competitive positioning in attracting experienced board members. The increase in the remuneration ceiling comes against the backdrop of intensifying competition for qualified non-executive talent in India's corporate sector.
HUL, a subsidiary of Unilever and one of India's largest consumer goods manufacturers, will seek formal approval for this amendment at its upcoming shareholder meeting. The change would require a special resolution, signifying its significance to the company's governance structure and compensation policy.