Reliance Announces Salary Cuts Upto 50%; Mukesh Ambani Will Not Take Any Compensation
Due to the ongoing coronavirus epidemic, Reliance has announced severe salary cuts, which is upto 50% in some cases.
Reliance Industries Chairman Mukesh Ambani has decided to forego entire compensation, due to loss in business, and weak forecast.
Upto 50% Salary Cuts In Reliance
Reliance Industries has announced that senior management in their company will now get 30-50% less salary.
This includes several board of directors, 1executive directors, executive committee members and senior leaders.
Besides this, several employees from their hydrocarbon division will get moderate salary cuts. Those employees who are earning more than Rs 15 lakh, will now get 10% less salary.
Executive Director Hital Meswani said, “The hydrocarbon business has been adversely impacted due to reduction in demand for refined products and petrochemicals. This has of course put pressure on a hydrocarbons business necessitating optimisation and cost reduction across all fronts. The situation demands that we maintain a razor sharp focus on operating cost and fixed costs and all of us need to contribute to make this happen,”
Employees working for hydrocarbon division will also not get any performance related incentives and bonuses this year.
Besides hydrocarbon division, employees from other divisions wont be affected.
Mukesh Ambani Will Forego Entire Compensation
Meanwhile Reliance Chairman Mukesh Ambani has decided to forego entire compensation for 2020.
Since last 11 years, Mukesh Ambani has been getting a salary of Rs 15 crore, which has been left unchanged. However, Times of India reported that despite not receiving any compensation, Mukesh Ambani’s is “still be eligible for a hefty dividend payment for his shareholding in the energy conglomerate.”
These decisions were taken during a board meeting, which was called to discuss a potential right issue of shares, as part of its strategy to become debt-free by 2021.
First time in last 30 years, Reliance can take this decision.
We will keep you updated, as more details come in,