ITC Chairman and Managing Director Sanjiv Puri’s total remuneration declined 6.8% YoY of Rs 23.92 crore for FY26 the financial year ended March 31, 2026, as per the company’s latest annual report. This drop is due to a reduction in performance bonus and long-term incentives/commissions, as per ITC statement.
Puri’s remuneration package for FY26 included Rs 3.8592 crore as basic/consolidated salary, Rs 88.03 lakh as perquisites and other benefits, and Rs 19.18 crore as performance bonus, long-term incentives, and commission.
When compared with the previous fiscal, this was nearly 7% lower than the FY25 remuneration. In FY25, his total remuneration stood at Rs 25.6563 crore, including Rs 3.5316 crore as basic/consolidated salary, Rs 73.18 lakh as perquisites and other benefits. Rs 21.3929 crore towards performance bonus, commission, and long-term incentives.
Why did Puri’s overall remuneration drop in FY26?
The annual report indicated that Puri’s fixed salary and perquisites increased during FY26.
His basic/consolidated salary increased from Rs 3.5316 crore in FY25 to Rs 3.8592 crore in FY26. Perquisites and other benefits also climbed from Rs 73.18 lakh to 88.03 lakh.
Perquisites and other benefits also surged from Rs 73.18 lakh to 88.03 lakh.
However, the performance bonus, long-term incentives, and commission component dropped to Rs 19.1757 crore in FY26 from Rs 21.3929 crore in FY25, resulting in lower overall remuneration.
| Remuneration Component | FY26 | FY25 |
|---|---|---|
| Basic/Consolidated Salary | Rs 3.8592 crore | Rs 3.5316 crore |
| Perquisites & Other Benefits | Rs 88.03 lakh | Rs 73.18 lakh |
| Performance Bonus, Long-Term Incentives & Commission | Rs 19.1757 crore | Rs 21.3929 crore |
| Total Remuneration | Rs 23.9152 crore | Rs 25.6563 crore |
As of March 31, the number of ordinary shares (of Rs 1 each) held by Puri was 3,00,591 and 1,01,000 shares were granted in stock options.
In FY25, the number of ITC shares held (singly/jointly) was higher at 4,52,843, and the number of stock options granted was 1,34,500.
The ratio of Puri’s salary against the median remuneration of all employees was 338:1, the annual report highlighted.
How much did ITC’s executive directors get paid?
The remuneration table in the Annual Report the compensation paid to other executive directors during FY26 is:
| Executive Director | Total remuneration (FY26) |
|---|---|
| B. Sumant | Rs 10.7989 crore |
| S. Dutta | Rs 9.4415 crore |
| Hemant Malik | Rs 7.2419 crore |
How many ITC shares and stock-based awards does Puri have?
As of March 31, 2026, Puri has 3,00,591 ordinary shares of ITC. During the financial year, he was granted 1,01,100 Stock Options and 35,500 Employee Stock Appreciation Rights (ESARSs).
The Annual Report mentions that eligible employees and executive directors were granted 12,19,630 Stock Options and 4,18,560 ESARs during FY26 under the company’s share-based incentive scheme.
What are Stock Options and ESARs?
The Annual Report explains that these schemes are designed as long-term incentives for eligible employees and executive directors.
It states, “Each Stock Option entitles the holder thereof to apply for and be allotted ten Ordinary Shares of the company of Rs 1 each upon payment of the exercise price during the exercise period.”
For ESARs, the reports mentions, “The ESAR Grantees are entitled to apply for and be allotted, upon payment of Rs 1 per share, Ordinary Share equivalent to appreciation for the total number of ESARs exercised.”
When can these benefits be exercised?
The Annual Reports state that in the case of both Stock Options and ESARs, the exercise period starts from the date of vesting and expires at the end of five years from the date of such vesting.
The vesting schedule is-
30% on completion of 12 months, 30% on completion of 24 months, and 40% on completion of 36 months.
The employees and executive directors receive these stock-based benefits in phases over their years instead of receiving them all at once.