Mumbai/IBNS: Mukesh Ambani’s three children, appointed as directors of Reliance Industries Ltd, will receive compensation solely for attending board and committee meetings, according to a company resolution seeking shareholder approval.
While Ambani himself has drawn no salary since the 2020-21 fiscal year, other executive directors receive various forms of compensation.
His children, Akash, Isha, and Anant, will receive a sitting fee and a commission based on the firm’s profits.
This arrangement is similar to the terms under which Nita Ambani was appointed to the board in 2014. She received a sitting fee of Rs6 lakh and a commission of Rs2 crore in the 2022-23 fiscal year.
“She has been instrumental in the expansion of Reliance Retail’s own brand portfolio including the acquisition of some exciting Indian brands and launch of the ‘Independence’ brand,” it added.
Isha directly holds 0.12 percent equity shares of the company.
Ambani owns 41.46 percent of Reliance shares.
Akash, an economics graduate of Brown University, US, leads India’s biggest telecom company Jio. “At Jio, he spearheads the creation of products and services that leverage new-age technologies like 5G, Artificial Intelligence, Blockchain and the Internet of Things,” it said.
Anant, also a graduate of Brown University, “is driving the expansion of energy and materials businesses of Reliance and its global operations in renewable and green energy.” “Under his leadership, Reliance aims to become a Net Carbon Zero company by 2035 by building world-scale capabilities in the production of clean fuels and materials of the future, developing next-generation carbon capture and storage technologies, creating holistic and circular materials businesses, and maximising crude to chemicals conversion,” the notice said.
Akash and Isha have held positions on the boards of both Jio and Reliance Retail since October 2014. Anant is involved with the boards of retail and Jio, in addition to those overseeing new energy ventures. Isha has taken up a directorship on the board of Jio Financial Services.
Mukesh Ambani’s association with the Reliance board dates back to 1977. He assumed the role of chairman in July 2002 following the passing of his father and group leader, Dhiburhai Ambani.
Upon his request, the company’s Board has proposed that no salary or profit-based commission be awarded to him for his new term spanning April 19, 2024, to April 18, 2029.
Starting from the financial year 2008-09, he voluntarily limited his annual compensation to Rs15 crore for 11 consecutive years. Since FY21, he chose not to draw a salary due to the impact of the COVID-19 pandemic on the company’s earnings. As a result, he has forgone any salary and profit-based commission for three consecutive years, commencing from FY21.
The remuneration of his cousins Nikhil and Hital Meswani rose to Rs 25 crore each, including Rs 17.28 crore commission (unchanged from the previous fiscal year), according to the annual report for 2022-23.
Executive Directors P M S Prasad and Pawan Kumar Kapil saw their remuneration rise.
While Prasad drew Rs 13.50 crore in 2022-23 including performance-linked incentives for 2021-22 which was paid in 2022-23. In 2021-22, he drew Rs 11.89 crore.
Kapil got Rs 4.40 crore, up from Rs 4.22 crore in 2021-22. He completed his 5-year term on May 15, 2023, and has since ceased to be a director of the company.
Ambani’s wife Nita, a non-executive director on the company’s board, earned Rs 6 lakh as a sitting fee (up from Rs 5 lakh in 2021-22) and another Rs 2 crore commission for 2022-23 (unchanged from the previous fiscal). She had in 2020-21 got Rs 8 lakh sitting fee and another Rs 1.65 crore commission.