L&T sets succession plan rolling

Elevates S N Subrahmanyan as deputy MD from October 1

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Engineering giant Larsen & Toubro (L&T) has set its succession plan rolling by elevating S N Subrahmanyan as deputy managing director (MD) and president from October 1. This also means that L&T will not have an MD & CEO after K Venkataramanan retires at the end of this month.

However, the new position makes Subrahmanyan, popularly known as SNS, the second-in-command to executive chairman A M Naik who is scheduled to retire two years later. Subrahmanyan, 54, currently heads the company's mainstay EPC (engineering, procurement and construction) business that garners about 70 per cent of the revenue. He was for long speculated to be the next CEO and is widely considered as among the serious contenders to replace Naik who got a five-year extension in 2012.

At its board meeting on Monday, L&T also approved appointment of D K Sen as a whole-time director and senior executive vice-president (infrastructure) with effect from October 1.

In a statement, Naik said these appointments were in line with succession plans and seamless transition of leadership. "Both Subrahmanyan and Sen have decades of experience in the company and proven track records of performance," he added.

The company currently has retirement age of 75 for its chairman and 70 for MD & CEO, and 67 for other directors on the board. M V Kotwal, a whole-time director on the board of the company, also retired this year at the age of 67. A company spokesperson said the company's retirement policy is not in public domain. If Subrahmanyan was elevated as MD & CEO, he could lead the company till the age of 70, but sources familiar with the developments said he has time on his side.

Commenting on L&T's succession plan on the sidelines of the company's annual general meeting held on September 9, Naik had said, "Normally, when a non-executive chairman is there, the position of MD & CEO is a must. But when there is an executive group chairman, the company may think of a different kind of structure," he said.

The composition of L&T board will change after the new appointments. Besides Naik, the others on the board will be SNS as deputy MD and president; R Shankar Raman, whole-time director and chief financial officer; Shailendra Roy, senior executive vice-president (power, minerals and metals); and Sen. The sources said Shankar Raman has also been elevated to the post of president but this could not be independently confirmed.