L&T boss SN Subrahmanyan earned Rs 510000000 last year, much more than average employees salary at L&T which was just….

According to reports, Subrahmanyan earned Rs. 35.67 crore in FY23 and Rs. 61.27 crore in FY22, excluding stock options and dividends.

Larsen & Toubro (L&T) Chairman SN Subrahmanyan caused a stir online with his comments advocating a 90-hour work week. Looking at his salary for FY24, it’s clear that he earned 535 times the median salary of the company’s employees. According to L&T’s FY24 annual report, Subrahmanyan’s total earnings amounted to Rs 51.05 crore, including a salary of Rs 3.6 crore, perquisites of Rs 1.67 crore, retirement benefits of Rs 10.5 crore, and a commission of Rs 35.28 crore. On the other hand, the median salary for over 59,000 permanent employees was Rs 9.55 lakh.

The report also showed that while employees saw a modest 1.32 per cent increase in their median salary, the managerial salaries rose by 20.38 per cent. This increase was due to higher profits and increased commission rates. “The median remuneration of employees of the company during the financial year was Rs 9.55 lakh. In the financial year, there was an increase of 1.32% in the median remuneration of employees,” stated the annual report.

“Average percentage increase made in the salaries of employees other than the managerial personnel for the FY 2023-24 was 1.74% whereas there is an increase in the managerial remuneration by 20.38%. Increase in managerial remuneration is mainly on account of higher profits and increase in commission rates,” stated the report.

According to a Bussiness report, Subrahmanyan earned Rs. 35.67 crore in FY23 and Rs. 61.27 crore in FY22, excluding stock options and dividends. And as per HR Katha, his salary is 534.57 times higher than the median salary of L&T employees, which was around Rs. 9.55 lakh in FY23-24.

Subrahmanyan’s 90-hour work week comment

Subrahmanyan’s comments in a video to employees caused controversy. He reportedly said, “How long can you stare at your wife? How long can the wives stare at their husbands? Come on, get to the office and start working.” He also mentioned that he would be happier if employees worked on Sundays, like him.

“Honestly, I am sorry that I am not able to make you work on Sundays. I will be happier if I can make you work on Sundays because I work on Sundays too,” Subrahmanyan said.

The comments came during a discussion with employees, where he was questioned about L&T’s six-day work week, as opposed to the five-day schedule followed by many other companies. In response, Subrahmanyan gave the example of the Chinese workforce. “If you have got to be on top of the world.. You have to work 90 hours a week. Get going, guys. Come on,” he added.

L&T Clarifies Stance

L&T later clarified that Subrahmanyan’s comments were made in the context of the hard work required to achieve great outcomes for the nation. The company emphasized that nation-building is a key part of its mission and expressed its commitment to fostering a culture driven by passion, purpose, and performance. “The chairman’s remarks reflect this larger ambition, emphasising that extraordinary effort,” L&T spokesperson said in a brief statement.

“At L&T, we remain committed to fostering a culture where passion, purpose, and performance drive us forward,” the spokesperson added.