ITC Chairman and Managing Director Sanjiv Puri saw his total remuneration decline to ₹23.91 crore in FY26 from ₹25.66 crore in FY25. This decrease was primarily driven by lower performance-linked bonuses and incentives, highlighting the company's policy of linking executive earnings directly to annual performance metrics.
What Happened
ITC Limited’s annual filing for the fiscal year 2025-26 revealed that Chairman and Managing Director Sanjiv Puri’s total remuneration fell by approximately 6.8% compared to the previous year. He received a total of ₹23.91 crore in FY26, down from the ₹25.66 crore reported in FY25. This disclosure is part of the standard transparency requirements for corporate governance in India, where listed companies report the compensation details of their Key Managerial Personnel.
The Incentive Factor
For large corporate leaders, a significant portion of total compensation is typically tied to performance-linked bonuses and long-term incentives. While Sanjiv Puri’s fixed pay—which includes his basic salary and perquisites—actually saw an increase, the total remuneration declined because of lower payouts in these variable components. Performance-linked bonuses and long-term incentive commissions fell to ₹19.17 crore in FY26, compared to ₹21.39 crore in the previous fiscal year. This structure is designed to align executive rewards with the company's annual financial results and long-term growth objectives.
Changes in Shareholding
The annual report also provided an update on the Chairman’s equity holding in ITC. As of March 31, 2026, Sanjiv Puri held 3,00,591 ordinary shares and had 1,01,000 shares granted under stock options. This reflects a change from the data as of March 31, 2025, when his holdings stood at 4,52,843 shares, with 1,34,500 shares granted as stock options.
Employee Compensation Context
ITC also disclosed the ratio of the Chairman's remuneration to the median remuneration of all employees, which stood at 338:1 for the fiscal year. The company reported the median remuneration for its 10,368 male employees at ₹5,30,593, while for its 683 female employees, it was ₹2,25,424. In the report, the company clarified that the difference in median pay for female workers was largely due to a higher concentration of new entrants within its manufacturing facilities.
Overall, the company noted that while the median remuneration of employees increased by 4% in FY26, the average remuneration of employees, as well as the remuneration for Key Managerial Personnel, decreased by 2% during the same period.
What to Track Next
For stakeholders and governance watchers, executive compensation reports provide insight into how management incentives are structured. Looking ahead, the focus for investors remains on the company’s ability to maintain revenue growth and profit margins amidst sector-specific challenges. The alignment of variable pay with the company's performance and the continued trends in employee remuneration will be points of interest in future annual reports.