Engineering and construction firm Larsen and Toubro is set to bid farewell to its executive chairman AM Naik after an association of 52 years, out of which he spent 17 years leading the firm. While Naik will not be at the helm of operations anymore, he will still address the company's annual general meetings for three more years through a non-executive role.
Naik will take on his new role October 1 onwards, after he retires on September 30. Addressing his last AGM on Tuesday, August 22, he said: "Although I shall address you in the years ahead as chairman, this is the last time I am doing so in the executive capacity," reported Business Standard.
He had announced his decision to leave in April, after which L&T had appointed S N Subrahmanyan as the chief executive officer and managing director on July 1. "In addition to Mr Subrahmanyan, I have mentored most of the members of the current leadership team, and am engaged in mentoring 25 more top executives. Rest assured, your company is in very good hands," Naik added.
The L&T veteran was much loved by the employees as well as the shareholders of the firm who are sure to remember him for his charm and sense of humour. He was in his elements even in the last AGM and asked the shareholders to limit the duration of the meeting as well as the number of demands.
"You will ask for housing, somebody for bonus shares, somebody for rights issue and in doing this the company will not exist," he joked.
Meanwhile, Naik's earnings at the end of the tenure have made quite some news. He is set to receive Rs 38.04 crore as retirement benefits, which includes "encashment of accumulated past service leave Rs 32.21 crore." He will also take home Rs 19.27 crore as perquisites, besides a 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 company said at the AGM, according to the Press Trust of India. Totally, Naik will receive Rs 78.91 crore.
