HUL Separates position of Chairman and CEO & MD

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HUL Separates position of Chairman and CEO & MD
25 Feb 2022
7 min read

News Synopsis

FMCG Major Hindustan Unilever Co., Ltd. (HUL) has separated the positions of Chief Executive Officer and Managing Director (CEO and MD) on March 31st.  FMCG Major has announced that Unilever's Chief Operating Officer, Nitin Paranjpe, has been appointed as non-executive chairman and Sanjiv Mehta has been appointed as CEO and MD. As Unilever announced in January, from April 2022, Paranjpe will take on a new role as Chief Human Resources Officer and lead the transformation of the company and Unilever's human resources function. He is also a member of the Heineken NV Board of Directors. The HUL move is despite the fact that the capital markets regulator, the Securities and Exchange Commission of India (SEBI), has not required listed companies to split their chairman and chief executive / CEO positions. The decision was made at the Sebi Board of Directors earlier this month. SEBI had previously requested listed companies to split the roles of chairman and chief executive officer before the April 2022 deadline. Listed companies initially had to separate the roles of chairman and MD / CEO from April 1, 2020. However, based on industry representatives, an additional two years of the grace period was given for compliance. This standard was part of a series of recommendations by the Uday Kotak Commission on Corporate Governance appointed by SEBI.

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