RIL chief Mukesh Ambani again caps his own salary – at Rs15 cr a year
23 May 2014
Mukesh Ambani, the chairman and managing director of Reliance Industries Ltd, said on Thursday that he would keep his total annual emoluments capped at Rs15 crore for the sixth year in a row, even as the remuneration of key executives went up.
Billionaire Ambani, India's richest individual as well as head of India's most valuable company, has kept his salary, perquisites and allowances and commission at Rs15 crore since 2008-09, forgoing almost Rs24 crore per annum.
"The CMD's compensation has been set at Rs15 crore as against Rs38.86 crore as per shareholders' approval, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels," RIL said in its annual report for the financial year ended 31 March 2014.
Ambani's remuneration for 2013-14 comprised Rs4.16 crore as salary; perquisites and allowances of Rs60 lakh; retirement benefits of Rs82 lakh; and Rs9.42 crore as commission on profit.
In the previous year, while his salary and perquisites and allowances were the same, he got commission of Rs9.35 crore and Rs89 lakh in retirement benefits.
Ambani voluntarily capped his compensation at Rs15 crore in October 2009 amid a debate over the size of CEO salaries.
While Ambani's salary remained capped, his key executives including oil and gas head P M S Prasad and refinery chief Pawan Kumar Kapil saw increases in compensation.
Prasad's annual package went up to Rs6.03 crore from Rs5.47 crore in 2012-13 after getting a higher performance-linked incentive of Rs3.67 crore against Rs3.12 crore the previous year.
Kapil earned Rs1.05 crore performance-linked incentive to take his total package to Rs2.49 crore in 2013-14. In the previous year, he earned Rs1.99 crore, including Rs65 lakh performance-linked incentive.
The criteria and the entitlement for performance-linked incentives for the two executives are determined by the human resources, nomination and remuneration committee, RIL said.
Ambani's cousins Nikhil R Meswani and Hital R Meswani saw their compensation rise to Rs12.12 crore from Rs11.05 crore a year ago. RIL's non-executive directors also got an extra Rs50 lakh each as commission, besides sitting fees ranging from Rs1 lakh to 4 lakh.
Apart from Ambani, the RIL board has the Meswani brothers, Prasad, Kapil, and company founder Dhirubhai Ambani's brother Ramniklal H Ambani.
Its independent directors include Dharam Vir Kapur, Dipak C Jain, Mansingh L Bhakta, Yogendra P Trivedi, Mahesh P Modi, Ashok Misra, Raghunath A Mashelkar and Adil Zainulbhai.