Mukesh Ambani, the richest Indian and chairman and managing director of Reliance Industries, wants to set an example by keeping his salary unchanged at Rs. 15 crore for the fifth consecutive year, according to the annual report of the company.
“The chairman and managing director’s compensation has been set at Rs. 15 crore as against Rs. 38.93 crore that he is eligible as per the shareholders’ approval,” RIL’s annual report for the financial year 2012-13, which came out last week, said. Ambani capped his salary “reflecting his desire to continue to set a personal example for moderation in managerial compensation levels.”
Ambani's act of foregoing almost Rs. 24 crore gets media attention as huge pay cheques of corporate honchos have been a hot topic ever since Prime Minister Manmohan Singh raised the need “to put a cap on CEO salaries” in a gathering of business leaders in 2007. Ambani capped his annual compensation at Rs. 15 crore in financial year 2008-09.
His remuneration for 2012-13 included Rs. 4.16 crore as base salary, Rs. 60 lakh towards perquisites and allowances, Rs. 89 lakh as retiral benefits and Rs. 9.35 crore as commission. RIL’s total payments towards remuneration of its key managerial personnel also remained unchanged at Rs. 44 crore during 2012-13.
RIL’s overall staff cost at consolidated level rose substantially to Rs. 5,179 crore in 2012-13, from Rs. 3,955 crore in the preceding year.
The number of employees rose marginally from 23,166 to 23,519.