Gaurav Munjal, CEO of ed-tech startup Unacademy, is facing online backlash for wearing a high-end Burberry T-shirt while announcing that employees would not receive appraisals this year. During a virtual town hall, Mr. Munjal, dressed in a $400 Burberry T-shirt, revealed that there would be no salary hikes for employees, a disparity that did not go unnoticed on social media.

A Reddit user shared a clip from the town hall, highlighting the luxury T-shirt and sparking widespread criticism. "This is a Burberry Black Parker T-shirt with an embroidered logo. While personal choices shouldn't matter, it is what it is," the user commented.

In his address, Mr. Munjal explained that the company had not met its growth targets for the year. "I think 2023 was an average year for us, and while 2024 was above average, we did not hit our growth goals. The good news is our burn rate is low, and we have a substantial runway. We do not face a survival risk," he said.

Mr. Munjal attributed the lack of growth to market challenges, headwinds, and declining revenue from offline centers. He conveyed that due to these factors, there would be no appraisals this year, despite earlier indications to the contrary. "I know I mentioned a few weeks ago that we would do appraisals, but upon starting the process, we realized we made a mistake," he explained.

Acknowledging that some employees have gone two years without appraisals, Mr. Munjal urged his workforce to consider the bigger picture. However, social media users were quick to criticize his luxury attire. "These CEOs won't lower their own standards of living but will stop appraisals for those running their businesses," one user wrote.

"Just take a pay cut! That money could have been used for employee appraisals. The CEO's salary is still disproportionately high compared to the average employee," suggested another.

Others recalled similar instances, like an ex-Boeing CEO addressing company losses while wearing expensive designer suits and watches. "This isn't limited to start-ups. CEOs take all the benefits from the government and market, earning crores. When it's time to give back to employees, they call it tough times," expressed another user.