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The independent directors of Reliance Industries will be going home richer from this financial year.
The company has offered to raise the commission on profits to its independent directors from Rs 21 lakh per annum to a whopping Rs 5 crore.
This will be paid to non-executive director apart from the sitting fees paid to them.
Reliance was one of the first companies which had offered to increase the fees of the independent director to Rs 1 crore few years back.
Reliance board has eminent lawyers ML Bhakta, YP Tridevi, Prof Dipak Jain, RA Mashelkar, DV kapur, Mahesh Modi, Prof Asok Misra and Ramniklal Ambani as non-executive directors.
The resolution to increase the salaries of the non-executive directors will be put to vote in the forthcoming annual general meeting of shareholders on June 6th.
The independent directors head the crucial committees of the board including the corporate governance, audit and remuneration committees.
Reliance said its shareholders at the 33rd AGM held on October 12, 2007 had approved payment of commission of Rs 21 lakh per annum to each non-executive director of the company, payable annually, for five years commencing from the financial year ending on March 31, 2008.
RIL said the role, responsibilities and participation of the non-executive directors in the affairs of the company have increased over a period of time. The compensation payable to the non-executive directors should therefore be commensurate with their increased role and responsibilities.
“The board has approved by way of an annual payment to the non-executive directors, a commission, as the Board of Directors may from time to time determine not exceeding Rs 5 crore per annum in the aggregate, for a period of 5 years from the financial year ending March 31, 2013,” it said.
