Larsen & Toubro (L&T) has come forward to defend its chairman, SN Subrahmanyan, after his remarks about employees working on Sundays and clocking 90-hour weeks drew widespread criticism. The comments, which surfaced in an undated video on Reddit, have ignited debates on work-life balance and corporate culture in India.
In response to the backlash, an L&T spokesperson stated that achieving exceptional results requires unparalleled dedication, especially during a pivotal time for India’s development.
“Nation-building is central to our mission. For over 80 years, we have been shaping the country’s infrastructure, industries, and technology. This is India’s decade, a time that demands collective commitment to achieve the vision of becoming a developed nation,” the spokesperson said. “The chairman’s remarks reflect this broader ambition.”
Subrahmanyan’s Statements at the Heart of the Controversy
During a recent employee interaction, Subrahmanyan discussed the company’s six-day workweek and expressed his preference for a more demanding schedule. “I regret I am not able to make you work on Sundays. If I can make you work on Sundays, I will be more happy, because I work on Sundays,” he said.
He further stirred controversy by asking employees, “What do you do sitting at home? How long can you stare at your wife? Come on, get to the office and start working.”
Drawing a comparison with Chinese workers, Subrahmanyan shared a conversation where a Chinese individual claimed China’s advantage over the U.S. lay in their 90-hour workweeks compared to America’s 50-hour workweeks. Subrahmanyan used this example to urge employees to increase their efforts, saying, “If you want to be on top of the world, you have to work 90 hours a week. Get going, guys.”
How Much Is SN Subrahmanyan’s Salary?
Larsen & Toubro (L&T) Chairman and Managing Director (CMD) SN Subrahmanyan earned a total remuneration of Rs 51 crore for the financial year 2023-24, reflecting a 43.11% increase compared to the previous year.
Subrahmanyan officially assumed the role of CMD on October 1, 2023. His compensation package includes a base salary of Rs 3.6 crore, prerequisites amounting to Rs 1.67 crore, and Rs 35.28 crore as commission. Additionally, he received Rs 10.5 crore as retirement benefits.
The CMD’s salary is 534.57 times the median salary of L&T employees, which stood at Rs 9.55 lakh for FY 2023-24. The company reported a modest 1.32% increase in the median remuneration of employees during the fiscal year.
As of March 31, 2024, L&T employed 59,018 permanent staff members. The company’s Chief Financial Officer (CFO), R. Shankar Raman, earned Rs 31.66 crore in total remuneration, which includes Rs 21.83 crore as commission and Rs 6.5 crore in retirement benefits. Shankar Raman’s salary witnessed a 42.84% increase during the year.
Former non-executive chairman AM Naik, who retired in September 2023, received Rs 1.69 crore in salary and an additional Rs 1.5 crore as pension for the fiscal year.
Despite substantial hikes in executive compensation, the company recorded only a marginal 1.32% increase in the median salary of its employees, sparking discussions about income disparity within the organization.
Online Backlash
The remarks have been widely criticized online, with many calling them inappropriate and questioning the implications for work-life balance.
Critics also drew parallels with comments made earlier by Infosys co-founder Narayana Murthy, who suggested that young Indians should work 70 hours a week to drive the nation’s growth. Murthy’s remarks similarly faced backlash, with many labeling such expectations as unrealistic and detrimental to employees’ well-being.
Impact on L&T Stock Performance
The controversy appears to have affected L&T’s stock performance. Shares of the company closed 1.71% lower on Thursday at Rs. 3,535. Over the past month, the stock has declined by 9.89%, with a 4.53% drop in the last five days.
Subrahmanyan’s comments have reignited discussions on the balance between professional dedication and personal well-being in India’s corporate sector. As companies and leaders continue to advocate for greater productivity, employees and critics alike stress the importance of maintaining a sustainable work environment.
