Big Bucks: L&T Chairman SN Subrahmanyan who wants 90-hr workweek earns ₹51cr—whopping 535x than average employee!

Larsen & Toubro (L&T) Chairman SN Subrahmanyan, who has advocated 90-hour workweeks for the company's employees, is earning around ₹51 crore per year, which is a whopping 535 times more than his average employees' annual salary.

According to The New Indian Express, Subrahmanyan’s salary for 2023-24 was an eye-popping ₹51 crore. Here's a breakdown: Base salary of ₹3.6 crore, prerequisites worth ₹1.67 crore, Commission of ₹35.28, and retirement benefits of ₹10.5 crore — totalling ₹51 crore.

According to a Moneycontrol report, Subrahmanyan earned ₹35.67 crore in FY23 and ₹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 ₹9.55 lakh in FY23-24.

Why Does The Big Pay Stand Out?

Notably, while the gap between Subrahmanyan and employees' pay is wide, there is another factor why his salary raises eyebrows for common people.

According to a Moneycontrol report, L&T employee-related expenses (i.e. benefits, increments and wages) grew at an average annual rate of 11 per cent between FY22 and FY24. And while this was more than the average national inflation at 6 per cent, it was far behind the company's own revenue growth rate. The report added that salaries of around 4 lakh employees rose 1.74 per cent in FY24, while that of managerial posts rose 20.38 per cent, as per L&T's annual report. Perks for management also includes an Embraer ERJ-145 private jet, used by Subrahmanyan and top executives, it added.

Further, besides the ₹51 crore salary package, Subrahmanyan and his wife, Meena Subrahmanyan, also drew dividends of ₹80 lakh and ₹25 lakh, respectively, in FY24. Thus, Subrahmanyan’s hefty package also attracts attention as L&T’s ownership structure is led by public investors and the L&T Employee Trust, which holds a 14.36 per cent stake in the company, the MC report pointed out.

L&T Clarifies Stance

L&T on January 9 issued a clarification on Subrahmanyan's remark on the 90-hour work week. A company spokesperson, in a statement, said Subrahmanyan's remarks reflected the larger ambition for India, which emphasised achieving extraordinary outcomes by making extraordinary efforts.

“The chairman’s remarks reflect this larger ambition, emphasising that extraordinary outcomes require extraordinary effort. At L&T, we remain committed to fostering a culture where passion, purpose, and performance drive us forward,” said the Larsen and Toubro spokesperson, while clarifying the chairman's comment.

“At L&T, nation-building is at the core of our mandate. For over eight decades, we have been shaping India's infrastructure, industries, and technological capabilities. We believe this is India’s decade, a time demanding collective dedication and effort to drive progress and realise our shared vision of becoming a developed nation.”

Netizen's Reaction to L&T chief's 90-hour week statement

Posting on social media platform X (formerly known as Twitter), a netizen addressed Subrahmanyan's thoughts, and posed the common man's lifestyle.

“Dear sir, after one or two years of marriage, nobody stares at their wife or spouse. But yes, those hardworking people who work for your company don't have 7 to 8 servants to do the pending jobs piling up at home like washing clothes, cleaning cars, taking their kids for a movie, or clearing their doubts, or just simply cleaning out a cupboard or getting a haircut,” user Poornima wrote.

She added, “Let your young employees enjoy family life. Give them an option to work on Sundays or enjoy a holiday. Family life and leisure time is as important as work life and money. When did you last receive a call from your loved one saying we are waiting for you at home and dinner is ready ?? I receive such a call everyday, and I consider myself the richest daughter in the world.”

Note to readers: This article has been updated to add new information.