Notable Surge in Highly Paid Employees at ITC Ltd Fuels Growth and Profitability

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Notable Surge in Highly Paid Employees at ITC Ltd Fuels Growth and Profitability

ITC Ltd has observed a remarkable surge in the number of employees earning over Rs 1 crore per year, marking a 24.11% increase in FY24 compared to the preceding year. The company's annual report indicates that 68 additional senior officials have entered this top salary bracket, totaling 350 for the financial year 2023-24, up from 282 in 2022-23. This rise in highly paid employees at ITC is seen as a reflection of the company's growth and profitability, with the allocation of Rs 6,134.35 crore for employee benefits in FY24, including Rs 5,352.94 crore towards salaries and wages, signifying a 6.9% increase from the previous year's expenditure of Rs 5,736.22 crore.

The increase in highly paid employees at ITC is directly linked to the company's expanding portfolio, with recent developments such as the opening of eight new factories and two hotels in India resulting in heightened hiring and deployment of human resources. ITC's profitability has seen a significant surge, registering a 24.5% rise in profit to Rs 18,753.31 crore in FY23, leading to escalated salaries for employees. As of March 31, 2024, ITC employed 24,567 permanent staff members, with the median remuneration witnessing a 5% increase and the average remuneration rising by 10% in FY24. Excluding key managerial personnel, the average remuneration saw a 9% hike.

ITC's median salary for male employees, excluding key managerial personnel and board members, was recorded at Rs 7,14,281, while female employees received a median salary of Rs 7,03,725. The company's operations span various sectors such as tobacco, packaged foods, paper and paperboards, hospitality, agri commodities, and health and personal care products. Top executives at ITC received considerable pay raises, with Chairman and Managing Director Sanjiv Puri witnessing a 49.6% increase in gross remuneration to Rs 28.62 crore in FY24 from Rs 19.12 crore the previous year. Executive Directors B. Sumant, Supratim Dutta, and Hemant Malik also received notable pay hikes ranging from 30% to 59%.

Reports indicate that ITC Ltd has outperformed Britannia Industries to become India's second-largest listed packaged foods company by sales, trailing only Nestle. ITC's foods business recorded consolidated sales of Rs 17,194.5 crore for the fiscal year ending March 31, 2024, showcasing its significant growth and market presence within the packaged foods industry.