L&T chairman’s pay highlights wage disparity amid 90-hour workweek controversy

The compensation package of Larsen & Toubro (L&T) Chairman S.N. Subrahmanyan has sparked discussions about wage disparity, particularly in light of his controversial advocacy for a 90-hour workweek. Subrahmanyan’s FY24 remuneration stood at ₹51.05 crore, 534 times the median salary of L&T employees, highlighting stark income inequality in the company.

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While L&T’s employee-related expenses grew at an annual rate of 11% between FY22 and FY24, the percentage salary hike for non-managerial staff was a modest 1.74% in FY24, compared to a 20.38% increase in managerial pay. The infrastructure giant, driven by lucrative public sector contracts, employs over four lakh people. Median salaries for male and female employees stood at ₹9.77 lakh and ₹6.76 lakh, respectively.

Subrahmanyan recently faced backlash following leaked comments suggesting employees work 90 hours a week and on Sundays to remain competitive. His remarks, including a controversial statement about staying home, fueled criticism of his stance on work-life balance. Many viewed the comments as tone-deaf, particularly given L&T’s six-day workweek and the mounting pressures on its workforce.

Critics argue that advocating for such a work regime is incongruent with the wage gap and employee concerns over fair pay. The disparity is particularly significant given L&T’s ownership structure, where public investors and the Employee Trust hold substantial stakes.