Retiring L&T executive chairman A.M. Naik to get Rs32.21 crore leave encashment
New Delhi: Engineering and construction giant Larsen and Toubro’s (L&T) group executive chairman A.M. Naik will get Rs32.21 crore as leave encashment as part of Rs38.04 crore retirement benefits, the company said in its latest annual report.
Naik has served for over 52 years at L&T, including as its head for over 17 years, and will assume the new role of non-executive chairman for three years beginning 1 October, immediately upon his retirement as executive chairman on 30 September.
Providing details of remuneration paid and payable to directors for the year ended 31 March, 2017, the 72nd annual report of the conglomerate says Naik will be receiving Rs38.04 crore as “retirement benefits” which include “encashment of accumulated past service leave Rs32.21 crore”.
Naik, who drew an annual salary of Rs3.36 crore for 2016-17, is said to have rarely taken leave during his career.
Apart from Rs32.21 crore as leave encashment, his perquisites stand at Rs19.27 crore, besides commission of Rs18.24 crore.
“Perquisites include perquisite value related to employee stock options exercised during the year in respect of stock options granted over the past several years by a subsidiary company,” the infrastructure major said in the annual report.
In total, Naik will be receiving a sum of Rs78.91 crore for 2016-17.
Under Naik’s leadership, L&T transformed into a $16 billion group with presence not only in engineering and construction but also in technology, manufacturing and financial services operating in over 30 countries.
The company’s market capitalisation increased to Rs1.56 trillion in 2017, from Rs4,400 crore in 1999.
Naik has led the company’s foray into international markets and consolidated presence overseas, with its global operations now accounting for around 30-35% of the total turnover.