Mukesh Ambani forgoes Rs 23.75 cr from salary

Industrialist Mukesh Ambani has decided to forego Rs 23.75 crore for the last financial year from his annual compensation as chief of Reliance Industries while keeping his salary capped at Rs 15 crore for third year in a row.

At the same time, the company’s total remuneration for top management personnel, as also commission paid to non-executive directors, declined during financial year 2010-11.

In its annual report for the fiscal, the company said that “The Chairman and Managing Director’s compensation has been set at Rs 15 crore as against Rs 38.75 crore that he is elgible as per the shareholders’ approval.”

RIL said the decision was taken to reflect “his desire to continue to set a personal example for moderation in managerial compensation levels.” Ambani’s salary has remained at Rs 15 crore since the financial year 2008-09. At a time when there was a raging debate on right-sizing of CEO salaries, RIL had announced in October 2009 that Ambani would take a pay cut as a result of which his pay package dropped.