With improved occupancy, pay packages of most hoteliers increased in FY22

As domestic tourism recovers from the impact of Covid, with occupancies improving across hotels, the pay packages of most hoteliers, including key managerial personnel, have seen a year-on-year increase.

The rise in remuneration for directors across companies such as IHCL, which owns Taj; and EIH Ltd, owners of Oberoi and ITC, moved up between 8 per cent and 250 per cent, according to data shared by them in their respective annual reports.

Some of these executives had forgone or drawn lesser salaries than pre-Covid year remuneration in FY21.

However, the exceptions were PRS Oberoi, former Executive Chairman of EIH, who relinquished his position on May 22, whose remuneration declined 48 per cent in FY22 to ₹15 lakh (from ₹29 lakh in FY21); and N Chandrasekaran, Non-Executive Director of IHC, who “as a policy abstained from receiving remuneration”.

Pay packages up

According to EIH Ltd’s annual report, at least three of its key managerial personnel saw a hike in remuneration, ranging between 25 and 262 per cent. “During the year, Executive Directors drew remuneration for eight months, compared to two months during last year,” it explained.

Shib Sanker Mukherji, Executive Vice-Chairman, saw the highest y-o-y increase of 262 per cent at ₹61.5 lakh; Arjun Singh Oberoi, MD – Development (for FY22), drew a remuneration of ₹116.1 lakh, up 176 per cent. Vikramjit Singh Oberoi, MD and CEO, drew ₹112.8 lakh as remuneration, up 56 per cent.

In the case of The Indian Hotels Company Ltd (IHCL), the country’s largest hotel chain, the hike in remuneration of key managerial personnel remuneration was at around 9 per cent to 39 per cent. Puneet Chhatwal, MD and CEO, IHCL, saw a 12 per cent raise. “Remuneration for the year excludes additional incentive remuneration of ₹3 crore, which was recommended by NRC and Board, which will be accrued and paid post approval of members,” its annual report noted.

The Senior V-P, Corporate Affairs and Company Secretary (group) of IHCL, Beejal Desai, saw a 39 per cent increase, the highest rise. This was followed by Girdhar Sanjeevi, EVP and CFO, in whose case the increase was 37 per cent.

ITC Ltd said the remuneration of key managerial personnel increased 8 per cent “due to increase” in their numbers. Remuneration of directors, key managerial personnel and other employees are in accordance with the company’s remuneration policy, it mentioned.

The percentage increase in median remuneration for employees of EIH Ltd for FY22 was 11.55 per cent. Permanent employees were 2,896. “The average percentage in employee salary apart from that of managerial personnel were 15.19 per cent.

‘Median remuneration’ is the average salary being paid to an employee as compared to the salary being paid to Directors of the company.

On the other hand, ITC said average remuneration for employees increased by 7 per cent while its total employees (across all verticals) were 23,829. Median remuneration increased by 4 per cent.

Interestingly, IHCL, which had 4,980 permanent people, said percentage increase in median remuneration was 4 per cent as there were “no increments”. Average percentile increase already made salaries of employees (other than managerial personnel) was 2 per cent.

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