L&T CMD SN Subrahmanyan’s salary doubles after a pandemic cut but Naik’s pay remains the same

• L&T is amongst the largest infrastructure companies in India, with its business spread across engineering, construction, manufacturing among others.
  
• In its annual report, the infra giant revealed large pay hikes to its top management, including CEO and MD SN Subrahmanyan.
  
• Here’s how much L&T’s top management took home last year.
  

Infrastructure major L&T’s CMD SN Subrahmanyan received a bumper payout in 2021-22 as his salary benefits doubled to ₹24 crore, without including post-employment benefits as listed in the company’s annual reports.

However, Subrahmanyan was one of top executives of the company who took a voluntary pay cut during the pandemic year. His salary had then gone down by almost 44%.

In real terms, currently his salary is much higher than it was before the pandemic. The company which has also been fighting off pandemic blues has booked orders to the tune of ₹1.9 lakh crore in the last financial year – which grew at 10%.

The company’s CFO Shankar Raman’s salary too almost doubled to ₹16 crore. The biggest jump in salary however was reserved for SV Desai, the senior VP of construction – whose salary went up almost three times.

It is to be noted however that their former CMD and the current group chairman AM Naik’s salary barely changed during the year. This is in spite of the fact that he took a 24% salary cut during the pandemic.


It’s not just the top executives who have received hikes. L&T’s overall staffing costs too went up by 20% during the year.

“As a percentage to revenue, it increased by 80 basis points, reflecting manpower ramp-up in the IT & TS segment and salary revision,” the company said.

The company also turned debt free during the year and even before that its interest costs have gone down for the year.

Earlier, a Motilal Oswal report showed that the employee benefit expenses of Nifty 500 companies surged by ₹1.2 lakh crore in 2021-22 – from ₹9.6 lakh crore in the year before. This is an average increase of 12.5%.


The NBFC sector offered the biggest salary hikes – at an average of 23%, while tech was a little behind at 19%. India’s four largest banks – SBI, ICICI Bank, HDFC Bank and Axis Bank, apart from HDFC – also figured in Forbes’ list of top performing companies last year.

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