The conglomerate is also revising the salary of chairman and managing director Sanjiv Puri and two executive directors, Nakul Anand and B Sumant, from October to make the remuneration “market competitive, performance driven and long term oriented, while recognizing the enduring impact of leadership on business performance and the need to reward talent,” it said in the notice.
ITC board will seek shareholders’ nod for these proposals at the AGM scheduled on July 20.
ITC is the country’s largest exporter of unmanufactured tobacco. In 2021-22, ITC sold unmanufactured tobacco of more than ₹1,797 crore in total. The company said in the notice that the proposed transaction with BAT will aid the growth of the company’s business.
Since this will be a related-party transaction for ITC and exceed ₹1,000 crore or 10% of the annual consolidated turnover of the company, whichever is lower, it will require approval of the shareholders. ITC said it is an associate of Tobacco Manufacturers (India) Ltd, which is a subsidiary of BAT Plc. By virtue of the same, BAT Plc and its subsidiaries are related parties of the company, it said.
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On the change in remuneration of the top management, Puri’s basic/ consolidated salary per annum will go up from ₹2.64 crore last fiscal to ₹3.12 crore. Last fiscal, Puri’s total gross remuneration was ₹12.59 crore including performance bonus, incentives and perquisites. ITC board will also seek the nod to increase the basic/consolidated salary of two executive directors Anand and Sumant, to ₹1.8 crore per annum from ₹1.56 crore.
ITC is the country’s largest cigarette manufacturer, the third largest listed packaged food company and the second largest hospitality firm. In the packaged food business, ITC’s gross revenue was Rs 13,195 crore in 2021-22 as per the disclosure in the annual report, which went up by 7.8% last fiscal. ITC trails behind
, which clocked sales of Rs 13,371 crore last fiscal.