Workaholic Naik to take away Rs 32.2 cr as leave encashment

Engineering and construction giant Larsen and Toubro's group executive chairman A M Naik will get Rs 32.21 crore as leave encashment as part of his Rs 38.04-crore retirement benefits, the company said in its latest annual report.

Naik has served for over 52 years at Larsen & Toubro (L&T), of  that over 17 years as the company’s head. He will assume the new role of non-executive chairman for three years beginning October 1, immediately upon his retirement as executive chairman on September 30.

Providing details of remuneration paid and payable to directors for the year ended March 31, 2017, the 72nd annual report of the conglomerate says Naik will be receiving Rs 38.04 crore as "retirement benefits," which include "encashment of accumulated past service leave Rs 32.21 crore".

Naik, who drew an annual salary of Rs 3.36 crore for 2016-17, is said to have rarely taken leave during his career.

Apart from Rs 32.21 crore as leave encashment, his perquisites stand at Rs 19.27 crore, besides commission of Rs 18.24 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 firm said in the annual report.

In total, Naik will be receiving Rs 78.91 crore for 2016-17.

Naik, 76, rose through the ranks to become CEO and MD in 1999, and ultimately the Chairman in 2003.

Under his 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 Rs 1.56 lakh crore in 2017, from Rs 4,400 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 per cent of the total turnover.

Naik has a philanthropic side to him and had reportedly pledged 75 per cent of his wealth to charity. Naik is estimated to be worth Rs 403 crore as on September 7, 2016, according to BloombergQuint data.

After retiring from the current position, Naik plans to cut down his weekly working time to 35 hours, from 65 now.