Mukesh Ambani Forgoes Salary for Fifth Straight Year at RIL
Reliance Industries chairman Mukesh Ambani has chosen not to receive a pay for the fifth year in a row, according to the company's most recent annual report.
With an estimated net worth of under $100 billion, Ambani is among the richest people in the world. He mostly depends on dividend income from his substantial stake in Reliance Industries.
Ambani has made the conscious decision to forsake his pay, benefits, and allowances since the COVID-19 epidemic began in 2020. His decision was first spurred by the pandemic's economic effects, and he still holds this position as the business strives to reach its full revenue potential.
Ambani's direct ownership of 1.61 crore shares in Reliance, which generates dividend income of Rs.8.85 crore at the disclosed rate of Rs.5.50 per share for the fiscal year 2024–2025, brought attention to his financial reliance on dividends. Furthermore, the majority of the company is owned by the promoter group companies under his control, which results in a sizeable dividend income of Rs.3,655 crore.
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Ambani set an example of moderation in executive income by capping his yearly compensation at Rs.15 crore from the fiscal year 2008–09 to 2019–20, prior to choosing to pay himself nothing.
This action was a component of his larger plan to support both the company's expansion and the well-being of society.
On the other hand, Ambani's children, Isha, Akash, and Anant, were given small commissions and sitting fees when they were nominated to the Reliance board in 2023. Since then, the youngest, Anant, has been promoted to executive director, and his new compensation range for this fiscal year is between Rs.10 crore and Rs.20 crore.
Other board members, such as independent directors, were paid in line with prior years, keeping a commission of Rs.2.25 crore in addition to sitting fees. This illustrates Reliance's methodical approach to board member compensation in the context of more extensive strategic changes.
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Ambani's cousins Nikhil and Hital Meswani's compensation packages somewhat decreased, although Executive Director P M S Prasad's income rose as a result of performance-based incentives. These adjustments demonstrate the organization's adaptable but performance-based pay plan.
Ambani's resolve to lead the business via steady expansion and stability is demonstrated by his decision to remain salary-free. The chairman's decisions align with his long-standing strategy of striking a balance between financial prudence and leadership responsibilities as Reliance navigates challenging market circumstances.