Larsen & Toubro Chairman and Managing Director SN Subrahmanyan has crossed the ₹100 crore compensation milestone for the first time, with total remuneration reaching ₹120.84 crore in FY26.
The sharp increase in compensation was primarily driven by higher commissions, performance-linked incentives, and gains from Employee Stock Option Plans (ESOPs).
Compensation Jumps 59% in FY26
According to company disclosures, SN Subrahmanyan witnessed a substantial rise in remuneration during FY26, with total compensation increasing nearly 59% compared to the previous financial year.
Over the past two years, his overall compensation has reportedly doubled, reflecting:
Performance-based commissions
ESOP-related gains
Long-term executive incentive structures
The latest remuneration places him among the highest-paid corporate executives in India.
ESOP Gains and Performance Incentives Drive Growth
A major portion of the compensation increase came from:
Employee Stock Option Plan (ESOP) gains
Variable performance-linked payouts
Executive commission structures tied to company performance
Large listed companies increasingly use ESOPs and incentive-based compensation to align executive interests with shareholder value creation and long-term business performance.
In the case of Larsen & Toubro, the compensation structure reflects the company’s strategy of rewarding senior leadership through market-linked incentives.
Trend Reflects Rising Executive Compensation in India
The rise in executive pay at major Indian corporations has become increasingly visible in recent years, especially across:
Infrastructure companies
Technology firms
Financial institutions
Manufacturing conglomerates
Performance-linked compensation, stock options, and commissions now account for a larger share of senior management earnings compared to fixed salaries alone.
The compensation growth of SN Subrahmanyan mirrors this broader trend among India’s top listed companies.
L&T Continues to Expand Across Businesses
Larsen & Toubro remains one of India’s largest engineering, procurement, construction, and infrastructure companies.
The company continues to operate across sectors including:
Infrastructure development
Defence manufacturing
Heavy engineering
Technology services
Green energy projects
Construction and urban development
The company has also recently expanded initiatives related to:
Skill development
Smart infrastructure
Defence manufacturing
Global engineering services
L&T Share Price Performance
As of May 22, 2026, around 10:10 AM, shares of Larsen & Toubro were trading near ₹3,935.80 on the NSE, marginally higher compared to the previous session.
Conclusion
The rise in remuneration of SN Subrahmanyan beyond ₹100 crore highlights the increasing role of performance-linked compensation and ESOP-driven rewards in India’s corporate sector. The compensation growth reflects both L&T’s executive incentive framework and the broader trend of rising pay packages among senior leadership at large Indian conglomerates.
Disclaimer:
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