As per an ET report, engineering and construction conglomerate Larsen & Toubro (L&T) is seeking shareholders' approval to increase the variable component of executive chairman AM Naik's pay from 0.30% of net profit (excluding extraordinary items) to up to 0.40%. This translates to a 37% or Rs 4.22 crore increase at FY13 profit level over his current variable pay of Rs 11.29 crore. Naik also earned a fixed salary of Rs 2.68 crore in FY12, according to company statements.
Across Inda Inc, CEO compensation increased by only 9% during FY13, according to a December 2012 report by Global management consultancy Hay Group. L&T is also seeking to increase the variable pay for other top managers including the CEO & MD, the deputy MD and full-time directors to 0.30%, 0.25% and 0.20% respectively. Earlier, these officials were earlier eligible for commission of 0.25%, 0.18% and 0.15% of profits respectively.
The proposals, cleared by the board of directors, are outlined in the notice to shareholders for the company's 68th AGM to be held next month.