Reliance Industries Limited Chairman and Managing Director Mukesh Ambani is drawing nil salary from his oil-to-telecom-and-retail conglomerate for the fourth straight year in a row. His children, Akash Ambani, Isha Ambani, and Anant Ambani, earned a sitting fee and a commission for being on the company board, the latest annual report of the company stated.
Ambani, son of Dhirubhai Ambani, limited his yearly compensation to Rs 15 crore, from the fiscal year 2008-09 through 2019-20. Subsequently, in the fiscal year 2020-21 onwards, amidst the global Covid-19 pandemic impact, he chose to abstain from receiving his salary until his company and its various ventures completely regained their financial strength. In 2023-24, he got ‘nil’ as salary, allowances, and perquisites as well as retiral benefits.
Ambani opted to continue to forgo his salary for the financial years 2021-22 and 2022-23, and now for the year 2023-24 as well. During these three years, Ambani consciously chose not to receive any allowances, perquisites, retiral benefits, commission, or stock options from Reliance in his capacity as the Chairman and Managing Director.
Nita Ambani, Mukesh Ambani’s wife, served as a non-executive director on the company’s board until August 28, 2023. During the year 2023-24, she received a sitting fee of Rs 2 lakh and a commission of Rs 97 lakh.
Ambani’s three children – Isha, Akash, and Anant – were appointed to the board in October of the previous year without any salary. They each received a sitting fee of Rs 4 lakh and a commission of Rs 97 lakh.
Moreover, it is noteworthy that prior to this period, Ambani had maintained a capped salary of Rs 15 crore since 2008-09 to demonstrate a personal commitment to moderation in executive compensation levels. The consistent salary limit of Rs 15 crore was upheld in the financial year 2019-20, reflecting Ambani’s steadfast approach to setting an example of restrained managerial remuneration over the course of 11 years.
Ambani, who has been on the Reliance board since 1977, assumed the role of chairman after Dhirubhai Ambani passed away in July 2002. He was recently reconfirmed as the leader of Reliance for another five-year tenure till April 2029.
“He shall, however, be entitled to reimbursement of expenses incurred for travelling, boarding and lodging including for spouse and attendant(s) during business trips and provision of car(s) for use on company’s business and communication expenses at residence shall be reimbursed at actuals and not considered as perquisites,” the special resolution seeking shareholder nod for his re-appointment had said last year.
“The company shall arrange to provide security to Ambani and his family members and the expenses borne by the company for the same shall not be considered as perquisites.
He and his family own 332.27 crore shares or 50.33 per cent stake in Reliance. This stake would have earned him and his family Rs 3,322.7 crore in dividend income for 2023-24 for which the company had declared a Rs 10 per share dividend.
Besides, Mukesh Ambani, the remuneration of cousins Nikhil and Hital Meswani was also mentioned in the annual report. It highlighted that Nikhil and Hital Meswani’s remuneration rose to Rs 25.31 crore and Rs 25.42 crore respectively in 2023-24 from Rs 25 crore each in FY23. This included Rs 17.28 crore commission (unchanged from the previous two fiscal years).
