Now Reading: FMCG firms raise CEO pay despite weak volume growth
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FMCG firms raise CEO pay despite weak volume growth
India’s largest consumer goods companies paid top executives more and appointed new leaders in FY26, even as demand and volume growth stayed subdued. Marico CEO Saugata Gupta received the highest total remuneration…
The Story in Brief
India’s largest consumer goods companies paid top executives more and appointed new leaders in FY26, even as demand and volume growth stayed subdued. Marico CEO Saugata Gupta received the highest total remuneration at Rs 47.24 crore, equal to 327.16 times the average employee salary. HUL’s Priya Nair received Rs 18.19 crore after becoming CEO in August, while Nestle’s Manish Tiwary drew Rs 26 crore. Britannia’s Rakshit Hargave received Rs 8.52 crore after a prolonged search.
Executive search firm Odgers said companies are paying a premium for leaders with experience in supply chains, mergers, innovation and new businesses. FMCG firms also increased variable pay linked to performance. Demand improved late in the year, with Q4 volume growth at 6% for HUL and Dabur, and 8% for Marico’s India business.
The Indian Opinion
The easy narrative is that lavish CEO pay proves corporate excess, while the opposing claim is that any premium is justified by scarce talent. Both miss the accountability test. Pay linked to results is defensible only when targets cover sustained volume growth, market share and employee outcomes, not just price increases or acquisitions. Annual reports should make these targets and variable payouts easier to assess. The next test is whether strong Q4 volumes continue beyond one quarter.
Source: livemint.com
This story was synthesised by AI from the source linked above.
