Mukesh Ambani salary: RIL chairman gets Rs 5 crore less than these two company directors!
Salary of RIL chairman Mukesh Ambani is less than two of the company directors, according to the latest annual report of the company. Ambani has kept his annual salary from Reliance Industries capped at Rs 15 crore. "Compensation of Shri Mukesh D. Ambani, Chairman and Managing Director, has been set at Rs 15 crore, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels," the company's annual report said. (see chart below)
Interestingly, the salary of two RIL directors - Nikhil R. Meswani, Hital R. Meswani - are over Rs 5 crore more than Ambani. Their total salary is Rs 20.57 crore each (see chart).
"Performance criteria for two Executive Directors, entitled for Performance Linked Incentive (PLI), are determined by the Human Resources, Nomination and Remuneration Committee," the annual report said.
"The tenure of office of the Managing Director and Whole-time Directors is for 5 (five) years from their respective date of appointments and can be terminated by either party by giving three months’ notice in writing. There is no separate provision for payment of severance fees," he added.
*Source: RIL annual report
Ambani wrote in the annual report: "We now rank in the top 100 profitable companies in the Fortune Global 500 list of ‘World’s Largest Corporations’. We delivered a solid performance in our hydrocarbons businesses despite the volatile oil price environment and incremental capacities in some of our product categories. Consumer businesses witnessed phenomenal growth in terms of revenues and profitability, with Reliance Retail and Jio now collectively contributing nearly 25% of consolidated segment EBITDA. According to Forbes, Ambani is currently the 13th richest man in the world with a total wealth of $50.7 billion."
On Friday, RIL reported a 6.8 per cent increase in its consolidated net profit for the quarter ended June 30 of the financial year 2019-20, on a year-on-year (YoY) basis.