L&T Executive Chairman AM Naik to take home Rs 32.21 crore leave encashment
AM Naik, chairman of Larsen & Toubro, who made over "75 percent of L&T of today", rarely took leave during his 53 year old career with the engineering and infrastructure major. At the twilight of his career, when Naik is moving to a non-executive role, L&T is richly rewarding him for that effort of over five decades.
According to the 72nd annual report of the company for 2016-17, AM Naik was/will be paid Rs 38.04 crore as retirement benefits, which will include encashment of accumulated past service leave of Rs 32.21 crore. Naik, who got a salary of Rs 3.36 crore and Rs 18.24 crore from commissions for the year ended March 31, 2017, also got perquisites worth Rs 19.27 crore. The 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- Rs 19.01 crore,mentions the annual report. Overall, the septuagenarian executive will net over Rs 79 crore for 2016-17.
In 1965, Anil Manibhai Naik had joined L&T as a junior engineer and rose through the ranks to become CEO and MD in 1999. In 2003, he became the chairman. In the past ten years alone, Naik took L&T from a Rs 29,819 crore gross revenues in 2007-08 to the ever highest revenues of Rs 1,10,011 crore by 2016-17 and with the highest ever profits of over Rs 6,000 crore from just over Rs 2325 crore a decade ago.
The 76 year old Naik, who has pledged over 75 percent of his wealth for charity, had offloaded some shares he had in L&T, in a series of transactions worth near Rs 72 crore in March 2014. On September 7, 2016, a data compiled by BloombergQuint had estimated Naik to be worth Rs 403 crore, the value of equity and stock options, excluding the total remuneration that he receives as the director of L&T.
As Naik explained to Business Today in the past, he could rarely spare Sundays from working and even refrained from spending a few days with his son and daughter in the US, during his annual visit to the US as chairman of L&T Infotech. "My daughter and son have given me up because 'you come one night and will go away the next morning'. So I have promised them, next October onwards you would not have any complaints", Naik told Business Today in an earlier interview. Naik's son Jignesh A Naik works with Google in California and his wife Rucha is CIO of Safeway, one of the largest retailers in the US. Naik's daughter Pratiksha and her husband Mukul are both doctors at Kentucky.
Naik also had revealed 95 percent of his savings in life has been sold (did not disclose the amount) for a major charity foray and he has floated three trusts - The Kharel Education Society, Nirali Memorial Medical Trust and Naik Charitable Trust.
Healthcare under Nirali Memorial Trust - in the name of his two year old grand daughter Nirali who died in 2007 of cancer - is going to be a major area of focus. Naik has already started the Nirali Memorial Radiation Centre in Surat and is setting up A M Naik Charitable Health Centre, an all discipline day-care hospital at Powai in Mumbai. It will have three operation theatres, dialysis unit and related facilities. Another plan is to set up a chemotherapy and radiology centre at Magdala in Surat. The trust has already set up a new wing and a residential colony for the staff of the hospital at Kharel in South Gujarat, the village of A M Naik. His father Manibhai Nichhabhai Naik was a freedom fighter who relinquished the job of a teacher at a prestigious Mumbai School to take up education in rural India. Naik's other trusts are working in the area of education and rural health, especially in Gujarat.