Larsen & Toubro (L&T) Chairman and Managing Director S N Subrahmanyan saw a notable jump in remuneration for FY25, reaching ₹76.25 crore. The sharp 50% surge was primarily driven by exercising employee stock options (ESOPs), as detailed in the company’s annual report.
The FY25 financials reveal that S N Subrahmanyan's total compensation touched ₹76.25 crore, up significantly from ₹51.05 crore in FY24. Of the total, ₹15.88 crore came from ESOPs exercised during the fiscal year, a benefit not availed in the prior year. L&T's consistent growth and solid balance sheet performance possibly supported this enhanced payout.
The report also highlighted the remuneration received by other key figures in the organisation. R Shankar Raman, Chief Financial Officer and Whole-Time Director, took home ₹37.33 crore, whereas Deputy Managing Director Subramanian Sarma received ₹44.55 crore. These figures underline L&T’s strategy of aligning leadership rewards with company performance and market standards.
Employee stock option gains often represent long-term value creation. Subrahmanyan’s ₹15.88 crore ESOP earnings indicate trust in the company’s future through personal stakeholding. These stock-based incentives are structured to motivate and retain leadership talent over the long haul, especially in performance-driven firms like L&T.
Read More: L&T Technology Services Q1FY26 Results: Revenue Recorded Double-Digit Growth!
L&T’s financial health and corporate milestones in FY25 justified the pay increases across leadership. The board emphasised in the report that the salary structures are in line with industry benchmarks, considering the executives’ role in guiding strategic growth initiatives and delivering shareholder value.
On July 18, 2025, Larsen & Toubro share price opened at ₹3,489.00 on NSE, above the previous close of ₹3,474.00. During the day, it surged to ₹3,497.00 and dipped to ₹3,478.70. The stock is trading at ₹3,491.00 as of 9:17 AM. The stock registered a marginal change of 0.49%.
Over the past week, it has declined by 0.14%, over the past month, it has declined by 4.67%, and over the past 3 months, it has moved up by 7.41%.
S N Subrahmanyan’s ₹76.25 crore pay package in FY25 reflects a combination of fixed pay and equity-based compensation initiatives like ESOPs. Supported by L&T’s strong operational performance, this rise in remuneration echoes industry practices and firmly aligns with a strategy of leadership-driven growth execution.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jul 18, 2025, 12:45 PM IST
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