Mukesh Ambani forgoes Rs 23.75 crore from salary
Billionaire industrialist Mukesh Ambani has decided to forego Rs 23.75 crore for the last fiscal from his annual compensation as chief of Reliance Industries while keeping his salary capped at Rs 15 crore for third year in a row.business Updated: May 09, 2011 17:34 IST
Billionaire industrialist Mukesh Ambani has decided to forego Rs 23.75 crore for the last fiscal from his annual compensation as chief of Reliance Industries while keeping his salary capped at Rs 15 crore for third year in a row.
At the same time, the company's total remuneration for top management personnel, as also commission paid to non-executive directors, declined during fiscal 2010-11.
In its annual report for the fiscal, the company said that "The chairman and managing director's compensation has been set at Rs 15 crore as against Rs 38.75 crore that he is elgible as per the shareholders' approval..."
RIL said that the decision was taken to reflect "his desire to continue to set a personal example for moderation in managerial compensation levels."
Ambani's salary has remained at Rs 15 crore since the fiscal 2008-09.
At a time when there was a raging debate on right-sizing of CEO salaries, RIL had announced in October 2009 that Mukesh Ambani would take a pay cut as a result of which his pay package dropped to Rs 15 crore for 2008-09 fiscal from over Rs 44 crore in 2007-08.
Ambani was India's top-paid executive in 2007-08.
Days before Ambani's decision, then corporate affairs minister Salman Khurshid advised the industry to shun "vulgar" salaries. Planning Commission deputy chairman Montek Singh Ahluwalia had also spoken against "indecent" compensation.
At that time, the company had also decided to adopt the capped structure method of working out executive compensation in RIL, instead of pegging it as a percentage of net profit.
In fiscal 2010-11, Mukesh Ambani's pay included Rs 4.16 crore as salary, Rs 60 lakh as perquisites and allowances, Rs 1 crore as retiral benefits and Rs 9.24 crore as commissions.
While his salary as also perquisites and allowances was unchanged from last fiscal, the retiral benefits fell from Rs 5.6 crore and commission rose from Rs 4.64 crore in 2009-10.
Among top management personnel, executive director PMS Prasad's total remuneration rose to Rs 2.37 crore in fiscal ended March 31, 2011, from Rs 1.53 crore in the previous year.
However, remuneration of each of two other directors, Nikhil Meswani and Hital Meswani, declined to Rs 11.05 crore, from Rs 11.14 crore in previous fiscal.
The total remuneration for top management during the period fell to Rs 40.67 crore, from Rs 40.90 crore, while commission to non-executive directors declined to Rs 1.68 crore from Rs 1.75 crore.
A non-executive director is paid sitting fee of Rs 20,000 for every board or committee meeting, besides the annual commission of Rs 21 lakh a year subject to a cap of 1% of the company's net profit.