FMCG giant Hindustan Unilever Ltd separates top posts
FMCG giant Hindustan Unilever Ltd (HUL) has separated the positions of the chairman and of the CEO and managing director.
Nitin Paranjpe, the chief operating officer of Unilever at present, becomes non-executive chairman of HUL with effect from March 31, 2022, while Sanjiv Mehta continues as the CEO and managing director.
Paranjpe was the CEO of HUL between 2008 and 2013. He was Mehta’s predecessor.
HUL said the separation of the posts is in line with progressive governance trends across the world although it is not mandatory in India to split the posts following a recent directive from the Securities and Exchange Board of India.
The market regulator recently diluted an earlier requirement that made it mandatory for the the top 500 companies by market capitalisation to split the positions from April 1.
After receiving several representations from companies, Sebi dropped the mandatory requirement and made it voluntary for listed companies to split the posts.
A statement from HUL said the nomination and remuneration committee (NRC) of its board recommended Paranjpe’s appointment to the board of directors.
“The board accepted the recommendation made by the NRC and has appointed Paranjpe as a non-executive chairman. The appointment is subject to approval of the shareholders, which the company will seek as per applicable regulations,’’ HUL said.
Unilever — the parent of HUL — on January appointed Paranjpe as chief transformation officer and chief people officer, leading business transformation and heading the HR function for the parent, effective April 2022.