Two brothers earn more than Mukesh Ambani in Reliance Industries, check out who
Mukesh Ambani needs no introduction in India, he is known for operating the country’s most valuable company in terms of market value Reliance Industries. Ambani’s 41 years of hard work has taken RIL in the list of Fortune Global 500 company, and 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. RIL is one golden company in India. But looks RIL does not pay much to Ambani compared to other directors.
In its 41st Annual General Meeting, RIL revealed that compensation of 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.
From the total pay scale, Ambani gets Rs 4.49 crore as salary and allowances, while Rs 0.27 crore as perquisites, Rs 0.71 crore as retiral benefits and Rs 9.53 crore commission payable.
Guess what! Ambani’s salary has been Rs 15 crore for a decade now, without any change.
Interestingly, two directors namely Nikhil R. Meswani and Hital R. Meswani earn way higher than Ambani. These two brothers get Rs 19.90 crore each from RIL.
Nikhil Meswani gets Rs 5.27 crore as salary and allowances, Rs 0.03 crore as perquisites, Rs 0.29 crore as retiral benefits and Rs 14.40 crore as commission. Meanwhile, Hital gets Rs 5.26 crore as salary, Rs 0.04 crore as perquisites remaining else is similar like brother Nikhal.
Let’s know who are these two brothers.
Nikhil is a chemical engineer and the son of Rasiklal Meswani, one of the Founder Directors of the company. He joined Reliance in 1986, and since July 01, 1988, he has been a Whole-time Director, designated as Executive Director, on the Board of the company.
He is primarily responsible for the petrochemicals division, and has made major contributions towards Reliance becoming a global leader in petrochemicals. Between 1997 and 2005, he handled the refinery business of the company.
Hital is a Management & Technology graduate from the University of Pennsylvania (UPenn) in the USA. He received a Bachelor of Science Degree in Chemical Engineering from the School of Engineering and Applied Sciences, UPenn, and a Bachelor of Science Degree in Economics from the Wharton Business School. He joined Reliance Industries Ltd. (RIL) in 1990 and is the son of Mr. Rasiklal Meswani, one of the Founder Directors of the company.
He is on the Board of the company as Whole-time Director, designated as the Executive Director, RIL, since August 4, 1995. His overall responsibility spans the Petroleum Refining and Marketing Business, Petrochemicals Manufacturing and several corporate functions of the company including Human Resources Management, Information Technology, Research & Technology and Capital Projects Execution.
Hital and Nikhil are nephew of Reliance founder chairman Dhirubhai Ambani.
But here’s a catch!
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.
However, Rs 15 crore is just merely a fraction in Ambani’s pocket considering the amount of other benefits RIL is offering him.
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.
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.
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.
He led and established one of the world’s most expansive 4G broadband wireless network offering end-to-end solutions that address the entire value chain across various digital services in key domains of national interest, such as education, healthcare, security, financial services, government-citizen interfaces, and entertainment.
As on March 31, 2018, Ambani holds highest 72,31,692 equity shares among directors. Second on the list would be his wife Nita Ambani having 67,96,292 equity shares, followed by Nikhil R. Meswani having 33,56,748 equity shares and Hital R. Meswani with 32,23,772 equity shares.
Wife Nita received Rs 1.56 crore as sitting fee and commission on net profit to Non-Executive Directors for the financial year 2017-18.
Ambani, 61 years old, entered on the board of Reliance Industries in 1977m but he became chairman of the company after his father death Dhirubhai Ambani in July 2002.