NEW DELHI: Nestle India chairman and managing director Suresh Narayanan took a 6% salary cut in 2022 as his annual salary during the year came down to R 17.7 crore from R18.8 crore in the previous year. The company’s annual report released recently shows that a majority of the drop in his annual salary was due to cut in perquisites during the year. In 2022, Narayanan received R4.2 crore as perquisites compared to R5.9 crore received in 2021.
Other components of his salary in 2022 include R9.6 crore as salary and allowances, R3.6 crore as commission and performance linked incentives. The company contributed R36 lakh towards his PF account during the year.
Chief Financial Officer David Steven McDanie, who demitted his office from 1 March 2023, was the second highest paid executive with a total salary of R7.97 crore. Matthias Christoph Lohner, who is executive director (technical) received R6.75 crore as salary during the year.
According to the annual report, chairman and MD Suresh Narayanan’s salary in 2022 is 120 times the median salary of the company’s employees. This is lower than the previous year when the ratio of his salary to the median salary of the company’s employees was 135 times. The median salary of male employees (other than board of directors and key managerial personnel) of the company in 2022 was R16.51 lakh and that of women employees was R12.84 lakh.
The median remuneration of employees in 2022 saw an increase of 6.6% compared to 10.8% in the previous year. “The increases (in remuneration) are a function of the company’s market competitiveness within its comparator group as ascertained through the detailed salary benchmarking survey the company undertakes annually and reflects the company’s reward philosophy,” the company said in its annual report.
The number of permanent employees on the rolls of the company during 2022 was 8,117 compared to 7,910 in 2021 The company posted revenue growth of 14.5% in 2022 to R16,790 crore compared to
R14,665 crore in 2021. The net profit of the company grew by 12.8% to R 2,390 crore compared to R2,118 crore in 2021.
Employees’ remuneration
Suresh Narayanan’s salary in 2022 is 120 times the median salary of the company’s employees. The median remuneration of employees in 2022 saw an increase of 6.6% compared to 10.8% in the previous year.