Variable Pay Drag: Variable Incentives Pull Down ITC Chief Sanjiv Puri’s FY26 Compensation

Even at the highest levels of corporate India, a softer fiscal year can impact the final paycheck. According to ITC’s latest annual report, the conglomerate’s Chairman and Managing Director, Sanjiv Puri, saw his total remuneration drop by 6.8% year-on-year, landing at ₹23.91 crore for the financial year 2026.

The compression in his overall package wasn’t a reflection of his base pay, but rather a direct result of a tighter market environment weighing on the company’s variable incentive structures.

The Pay Packet Breakdown: Fixed vs. Variable

While Puri’s fixed salary and corporate perks actually saw an upward revision during the year, a drop in performance-linked payouts pulled the final number down from the ₹25.66 crore he pulled in during FY25.

Key Executive Trends from the FY26 Annual Report

• The Median Pay Gap: Even with the downward correction, Sanjiv Puri’s compensation stands at a massive 338:1 ratio against the median remuneration of an ITC employee.

• A Broader C-Suite Trend: This wasn’t an isolated drop. The overall remuneration pool for ITC’s Key Managerial Personnel (KMPs)—which includes the core executive management team—declined by 2% across the board during FY26.

• Trimming Equity Exposure: The report also highlighted a reduction in Puri’s direct skin in the game. His personal shareholding in ITC dropped to 3,00,591 shares (down from 4,52,843 shares the previous year), while his fresh stock option grants were reduced to 1,01,000 options.

The Demographics Note: The report shed light on an interesting disparity in employee pay scales: the median salary for ITC’s male workforce stood at ₹5,30,593, while the female median was lower at ₹2,25,424. The company explicitly clarified that this gap is entirely structural rather than discriminatory, as a significant majority of female recruits are new, entry-level entrants joining ITC’s newly commissioned manufacturing units.