Asia's richest man forgoes salary for fourth consecutive year
What's the story
Mukesh Ambani, the chairman of India's most valuable company Reliance Industries Ltd (RIL), has chosen not to receive a salary from his conglomerate for the fourth consecutive year. This decision comes despite his leadership role in the oil-to-telecom-and-retail giant. The latest annual report of RIL confirms that Ambani received 'nil' salary, allowances, perquisites, and retiral benefits in FY24.
Remuneration cap
Ambani's salary history and COVID-19 impact
From FY09 to FY20, Ambani had limited his annual remuneration at ₹15 crore, setting a personal example of salary moderation at senior managerial levels. However, in FY21, he decided to forgo his entire salary due to the impact of the COVID-19 pandemic on global business operations. He pledged not to draw any salary until RIL and all its businesses had fully recovered their earnings potential.
Leadership journey
Ambani's tenure and remuneration details
Ambani has been a board member of RIL since 1977 and was appointed as chairman after his father, Dhirubhai Ambani, passed away in July 2002. Last year, he was re-appointed as the head of RIL for another five-year term until April 2029. Despite not drawing a salary, Ambani is entitled to reimbursement of expenses incurred during business trips including travel, boarding and lodging expenses for himself and his spouse and attendants.
Security measures
RIL's security provisions and Ambani's net worth
RIL also provides security to Ambani and his family members with all expenses borne by the company. These are not considered as perquisites either. With a net worth of $109 billion, Ambani is currently the richest in the whole of Asia. He is ranked as the 11th richest person in the world, as per Bloomberg Billionaire Index. Meanwhile, RIL executive director PMS Prasad saw his remuneration rise to ₹17.93 crore, up from ₹13.50 crore in 2022-23.
Board compensation
Ambani's children and board members' remuneration
Ambani's three children, Isha, Akash, and Anant were appointed to the board in October last year at nil salary. They each received ₹4 lakh as sitting fee and ₹97 lakh as commission. All independent directors received a commission of ₹2.25 crore (up from ₹2 crore in 2022-23) and sitting fees.