Reliance chairman Mukesh Ambani foregoes salary for 4th consecutive year; Here’s what we know

Mukesh Ambani, who leads Reliance Industries, has chosen to skip his salary for the fourth year in a row, a decision he made as a result of the COVID-19 pandemic.

By Sakina Kaukawala

Published on Aug 08, 2024 | 03:26 PM IST | 74.5K

Mukesh Ambani (via Getty Images)

Mukesh Ambani, Chairman of Reliance Industries, has decided to forego his salary for the fourth consecutive year. In response to the economic impact of the COVID-19 pandemic, Ambani has decided to draw no salary beginning with the fiscal year 2020-2021. This decision will be in effect throughout the fiscal year 2023-24 as per Business Standard.

Prior to 2020, Ambani limited his annual remuneration to Rs 15 crore from 2008-09 to 2019-20. This cap was intended to show moderation in managerial compensation. Since FY21, he has chosen to forego his salary, allowances, and perquisites, citing the pandemic's impact on the company and its operations.

According to Reliance Industries' most recent annual report, Ambani's salary, allowances, and perquisites for fiscal year 2023-24 are nil. Despite this, Ambani continues to be entitled to reimbursement for business-related travel, boarding, lodging, and communication expenses. The company will also provide security for Ambani and his family, and these expenses will not be considered perquisites.

While Ambani has chosen to forego his salary, other members of the Reliance board have been compensated. His children, who joined the board in October 2023, received a sitting fee and a commission. Nikhil and Hital Meswani, Ambani's cousins, had their salaries increased to Rs 25.31 crore and Rs 25.42 crore, respectively, for FY24.

Executive Director P M S Prasad's pay increased to Rs 17.93 crore. Non-executive directors, including well-known figures such as Arundhati Bhattacharya and K V Kamath, earned Rs 2.25 crore in commission and sitting fees.

Ambani has been with Reliance Industries since 1977 and was appointed Chairman in July 2002, following the death of his father, Dhirubhai Ambani. In 2023, he was reappointed as the company's CEO for another five-year term until April 2029, during which he will continue to receive no pay. This approach is consistent with his previous decision to set a personal example of compensation restraint, particularly during difficult economic times.

Ambani's decision to forego personal compensation shows his support for the company's long-term growth and stability. This gesture may also have a positive impact on the company's public image and stakeholder trust, reinforcing Reliance's reputation as a resilient and forward-thinking conglomerate. As the company recovers from the pandemic, Ambani's leadership and financial decisions continue to shape its future trajectory.

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