Premium| Listen to this article |
New Delhi: Consumer goods company Hindustan Unilever Ltd (HUL) on Thursday announced the splitting up of positions of the company’s chairman of the board and the chief executive officer & managing director, in line with Securities and Exchange Board of India’s mandate seeking listed companies to now voluntarily split the two roles.
The maker of Dove soaps and Knorr soups announced the appointment of Nitin Paranjpe, currently chief operating officer of Unilever as a non-executive chairman of the company with effect from 31 March, 2022. Sanjiv Mehta will continue as the CEO&MD of HUL.
The move comes after the country’s markets regulator Sebi had earlier mandated that the two roles be separated from 1 April after a two-year extension to the initial roll-out date.
However, earlier this month Sebi revised its earlier stance making it voluntary rather than mandatory for companies to comply with the rule following the low level of compliance by listed entities.
“The Nomination and Remuneration Committee (NRC) of the HUL Board recommended his appointment to the Board. 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," the company said in a statement.
In January, Paranjpe was appointed as Chief Transformation Officer and Chief People Officer, leading the business transformation, and heading the HR function for Unilever effective April 2022.
Paranjpe is also a member of the Supervisory Board of Heineken NV.
For FY2020-21, the company reported a turnover of ₹45,311 crore.
Paranjpe brings in huge knowledge and experience which will enrich the deliberations and add value to the Board, said Mehta.
Sanjiv Misra, chairman of the NRC, said that Mehta has played a stellar role not only in leading the business to high performance in a challenging environment but has also led the board, most ably, setting high standards of governance and transparency in board management.
“On behalf of the Board, I would like to thank Sanjiv for his contributions as the Chairman and look forward to continuing to work with him in his capacity as the CEO and Managing Director. We would also like to welcome Nitin as the Non-Executive Chairman of the Board," he said.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!