Hindustan Unilever Ltd (HUL) on Thursday said it had separated the roles of chairman and chief executive/managing director in “consonance with emerging, progressive governance trends”.
The company announced the appointment of Nitin Paranjpe, currently a chief operating officer of Unilever, as a non-executive chairman with effect from March 31. Sanjiv Mehta will continue as the CEO and MD.
The FMCG major went ahead with splitting the posts even when the market regulator said recently that doing so was not necessary anymore.
The Securities and Exchange Board of India (Sebi) had earlier made it mandatory for listed companies to split the position of chairperson and MD and CEO positions.
The Nomination & Remuneration Committee (NRC) of the HUL Board recommended Paranjpe’s appointment, which the board accepted. The appointment is subject to the approval of the shareholders.
Unilever had announced in January that Paranjpe would be the Chief Transformation Officer & Chief People Officer effective April.
“We welcome Paranjpe back to HUL as the non-executive chairman,” HUL said in a statement. “He brings in huge knowledge and experience which will enrich the deliberations and add value to the board.”
Paranjpe, commenting on his appointment, said, “It’s an honour and a privilege to be appointed as the non-executive Chairman of HUL; one of the most respected companies in the country. I look forward to working closely with Sanjiv and the Board to further strengthen the company and help navigate the challenges and opportunities in the years ahead.”
Also Read: Sebi's move to make separation of Chairperson and MD/CEO roles 'voluntary' setback for governance, say sources
He is also a member of the supervisory board of Heineken NV.
Sanjiv Misra, chairman of the NRC, said, “Mehta 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.”
Mehta thanked the board for their support and added, “It has been an honour to have led the HUL board over the past few years.”
First Published: IST