According to STM Auditors, the median annual salary of an employee at L&T was only...

The comment made on the internet by s n Subrahmanyan, the chairman of Larsen & Toubro, turned out to be a little controversial as he said he is in favor of a 90 hour work week. Now looking at his income it does make sense that he would endorse such a structure since it stands at 535 times the compensation that any other employee of that company earns. In the Annual Report of the Company, it has been stated that sn Subrahmanyan had Rs 51.05 crore as his total income, out of which Rs 3.6 crore is his salary, Rs 1.67 crore are allowances, retirement benefits net of Rs 10.5 crore and Rs 35.28 crore are commission. The Average pay of 59000+ permanent employees stood at 9.55 LPA. 

The report also mentioned that there was a spike in the employees median compensation by 1.32 per cent as compared to the rise of managerial salaries by 20.38 per cent. This spike was because of the better profits and better commission rates provided. “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” said the report.

“According to the report, in the FY 2023-24 all employees, other than the managerial ones, received an average salary increment of 1.74% which is a lower than the 20.38% rise seen in the salary of the managerial staff. The increase in managerial remuneration can be attributed primarily to the increase in commission rates as well as increase in profits.”

Subrahmanyan, as per Moneycontrol, is reported to have earned Rs 35.67 crores in FY23 and Rs 61.27 crore in FY22, Without stock options and dividends. He also earned approximately Rs 18,278,775 in base salary, including stocks, options, and dividends as of HR Katha, 534.57 times more than the median earnings of workers at L&T, which was around Rs 9.55 lakh in FY23-24.

In respect to how many hours he works a week, Subrahmanyan claims that it's around 90 hours on average.

For a firm employee, and with his words to employees in a video, Subrahmanyan would not be termed as a gentle boss, we quote, “How long can wives stare at their husband’s who can sit in an office, get started working” and “It is okay and I would be happy to all those whom work on Sunday if I work on Sunday.”

These statements of his were made during a recent talk with the employees of the company, against the background of questions relating to the six-day working week of L&T in comparison with the five days which many companies practice. In that orientation, he cited instance of the Chinese workers. To this, Subrahmanyam commented that, “If you have got to be on top of the world.. You have to work 90 hours a week. Get going, guys. Come on.” 

L&T Provides The Additional Explanation

Later, LT clarified that Mr. Subaramanyan’s comments were related to the efforts that such great achievements require for the country. The company explained that construction and progress of the nation is a significant part of the mission of the company which strives to create such an environment. “The chairman’s remarks reflect this larger ambition focusing that what is require in this” L&T spokesperson said in a brief statement. 

Spokesperson: “At L&T, we continue to be committed to nurturing a culture that is driven by passion, purpose, and performance.”