Cheque it out

Mukesh Ambani has taken a pay cut. Maybe he’ll spread the saved amount around. We’re waiting eagerly.

Mukesh Ambani, known in circles to be a rich man, has decided to take home a pay cheque that will be considerably lighter than what he was getting last month. Considering that he will be now paying himself an annual package of Rs 15 crore — down from more than Rs 44 crore last year — Mr Ambani will still be known in circles as a rich man. But in addition to that, he will be known as a man who isn’t bewitched by the lure of money.

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As the CEO of RIL, Mr Ambani’s gesture is a reflection of “his desire to set a personal example of moderation in executive compensation”. With a top-notch chief executive officer like Mr Ambani taking a pay cut, as opposed to some executive directive from politicians making a saintly point, we are pretty sure that CEOs all across will now happily do the same. Some may reduce their salaries by crores; some by a few lakhs; and some even by a symbolic rupee. But it’s the symbolism that matters — and will make everyone realise that austerity is the new flash.

Having been the highest paid CEO in the country, Mr Ambani’s sacrifice is bigger than it looks. Now, his salary is a humble 98 per cent below the 5 per cent Companies Act limit of the company’s net profit. Who knows, this might even trigger the other Mr Ambani, also known in circles as a rich man, to go one up and give up his company and clothes for a higher cause. But does all this make our lives — and those so much worse off than we are — any better? After all, it would make sense if that extra Rs 29 crore saved by Mr Ambani could be distributed among others like RIL guards, drivers and, if we may be so bold as to suggest, us. But then, the other Mr Ambani will probably not like that.