Reliance Industries not done with Mukesh Ambani yet, gives another 5-year extension
The Board of Directors of Reliance Industries, at its meeting held on April 27, 2018 has, subject to the approval of members, re-appointed Ambani as Managing Director, for a period of 5 years from the expiry of his present term.
Mukesh Ambani needs no introduction in India, he is known for operating one of the country’s most valuable companies in terms of market value, Reliance Industries. He is also the richest Indian of them all. Ambani's 41 years of hard work has taken RIL into the list of Fortune Global 500 company and kept it there. Currently, by FY18, the company’s consolidated turnover stands at Rs 4,30,731 crore with net profit of Rs 36,075 crore and consolidated contribution to national exchequer of Rs 86,942 crore. Not only this, the company has a market valuation of Rs 6,23,070.31 crore as on June 08, right after TCS which has valuation of Rs 6,69,311.51 crore. RIL is a golden company for India. And looks like, Reliance is not ready to let go of their leader, as they have re-appointed Ambani as Managing Director for another 5-year tenure.
In its 41st AGM meeting, Reliance Industries said, “The Board of Directors of RIL, at its meeting held on April 27, 2018 has, subject to the approval of members, re-appointed Ambani as Managing Director, for a period of 5 (five) years from the expiry of his present term, i.e. with effect from April 19, 2019.”
It is proposed to seek members’ approval for the re-appointment of and remuneration payable to Ambani as Managing Director of the Company, in terms of the applicable provisions of the Act.
In addition to the salary, perquisites and allowances of Ambani shall be entitled to receive remuneration based on net profits which will be determined by the Board and / or HRNR Committee of the Board for each financial year.
The founder of RIL has capped his salary till Rs 15 crore since 2009. Ambani voluntarily decided to limit his compensation surrounding debates over right-sizing of CEO salaries.
Ambani led Reliance’s development of infrastructure facilities and implementation of a pan-India organized retail network spanning multiple formats and supply chain infrastructure. Today, Reliance Retail is the largest organised retail player in India. He has created global records in customer acquisition for Jio, Reliance’s digital services initiative.
As of January 2018, Mukesh Ambani was ranked by Forbes as 18th-wealthiest person in the world, with a net worth of $43.2 billion.