Mukesh Ambani takes a 66% pay cut

Mukesh Ambani, last year’s highest paid CEO of India Inc. has taken a sharp 66 per cent cut in his annual compensation, a move that could propel moderation of executive salaries in the country.

Mukesh Ambani, last year’s highest paid CEO of India Inc. has taken a sharp 66 per cent cut in his annual compensation, a move that could propel moderation of executive salaries in the country.

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Recently corporate affairs minister Salman Kursheed and planning commission deputy chairman Montek Singh Ahluwalia had raised concern on ‘vulgar’ salaries paid to executives by companies.

Reliance Industries, India’s largest private sector company on Thursday said its recommendation committee recently had capped the compensation payable to chairman & managing director Mukesh Ambani at Rs 15 crore ‘reflecting his (Ambani’s) desire to set a personal example of moderation in executive compensation.’

Ambani’s revised package includes Rs 1.59 crore as salary, perks and retrial benefits and Rs 13.41 crore as commission for the year 2008-09. This is compared to total compensation of Rs 44.2 crore for 2007-08.