Ambani siblings will get only fees for board meetings, no salary

Billionaire Mukesh Ambani’s three children will be paid only fees for attending board and committee meetings as directors of Reliance Industries Ltd, the company said in a resolution seeking shareholder approval for their appointment to its board. .

Mukesh Ambani with wife Nita Ambani and children.(PTI)

While Ambani, 66, has received zero salary from the company since financial year 2020-21, other executive directors, including his cousins ​​Nikhil and Hital, are paid salary, perks, allowances and commission.

Their three children – twins Akash and Isha (both 31) and Anant (28) – will receive only sitting fees and a commission on the profits earned by the firm.

The terms of appointment of all three are the same on the basis of which Ambani’s wife Nita was appointed to the company board in 2014. 6 lakhs and commission 2 crore in the financial year 2022-23 (April 2022 to March 2023), according to the company’s latest annual report.

Ambani, 66, had announced at the company’s annual shareholders meeting last month that his three children Akash, Isha and Anant would be included on the board of directors (BoD) of Reliance.

He also said he would remain Chairman and CEO of the company for the next five years, focusing on developing and empowering the ‘next generation’ of leaders.

Reliance has now sent a postal ballot to shareholders for his appointment as the board of director of the company.

“He shall be paid remuneration in the form of fees for attending meetings of the Board or its committees or any other meeting decided by the Board, reimbursement of expenses for attending meetings of the Board and other meetings and profits relating to Commission will be given.” Said in the notice.

Reliance has five broad verticals – oil-to-chemicals (O2C) business including the world’s largest single-location refining complex and petrochemical plant, telecom and digital business, retail (both physical and online), new energy and recently launched Financial business done. Services.

Ambani first talked about succession planning at the oil-to-telecom conglomerate in 2022, where he announced that each of his three children will head different divisions of the company (Aakash will head telecom, Isha will head retail). Major and Anant will be made the new major) Energy).

He did not disclose succession plans for Reliance’s mainstay oil-to-chemicals or O2C business division.

At the annual general meeting (AGM) last month, Reliance shareholders approved giving Ambani another five-year term till 2029 as the head of India’s most valuable company. And like the last three years, he has opted to take zero salary during this period.

As part of the succession plan, Nita resigned as director of Reliance, but was made a permanent invitee to all board meetings – a status that no one on the board enjoys except Mukesh Ambani and other directors. Requires the approval of shareholders for any extension beyond its tenure. Current agreed terms but he will remain on the board forever.

Isha, a graduate of Yale University with dual degrees in Psychology and South Asia Studies and an MBA from Stanford University, is “driving Reliance Retail’s expansion into new categories, geographies and formats,” the shareholder notice said.

“He has been instrumental in Reliance Retail’s expansion of its brand portfolio, including the acquisition of some exciting Indian brands and the launch of the ‘Independence’ brand,” it said.

Isha directly holds 0.12 percent equity shares of the company.

Ambani holds 41.46 percent shares of Reliance.

Akash, a graduate in economics from Brown University of America, heads India’s largest telecom company Jio. “At Jio, he leads the creation of products and services that leverage new-age technologies such as 5G, Artificial Intelligence, Blockchain and Internet of Things,” it said.

Ananth, a graduate of Brown University, is “driving the expansion of Reliance’s energy and materials businesses and its global operations in renewable and green energy.”

“Under his leadership, Reliance aims to achieve net carbon zero by 2035 by building world-class capabilities in the production of future clean fuels and materials, developing next-generation carbon capture and storage technologies, and building holistic and circular materials businesses. Company to be formed, and to maximize the conversion of crude oil into chemicals,” the notice said.

Akash and Isha have been on the boards of both Jio and Reliance Retail since October 2014. Apart from being on the boards of companies operating new energy businesses, Anant is also on the boards of Retail and Jio. Isha has been appointed director on the board of Jio Financial Services.

Mukesh Ambani has been on the board of Reliance since 1977 and was promoted as chairman of the company in July 2002 following the death of his father and group patriarch Dhiburhai Ambani.

He set a limit on his annual remuneration Rs 15 crore from FY 2008-09 (April 2008 to March 2009) to FY 2020 – 11 years; And from FY21 onwards, he chose to forego his salary due to the COVID-19 pandemic until the company and all its businesses fully returned to their earning potential.

Accordingly, he has not been paid any salary and profit-based commission for three consecutive years starting from FY 2011.

On his request, the company board has recommended that he will not be paid any salary or profit-based commission for the new term from April 19, 2024 to April 18, 2029.

Remuneration of his cousins ​​Nikhil and Hital Meswani increased Rs 25 crore each including As per the annual report for 2022-23, Rs 17.28 crore commission (unchanged from the previous financial year).

Executive directors PMS Prasad and Pawan Kumar Kapil saw an increase in their remuneration.

While Prasad drew 13.50 crore in 2022-23, which also includes performance-linked incentive for 2021-22, which was paid in 2022-23. They made a draw in 2021-22 11.89 crores.

Kapil got it above 4.40 crores 4.22 crore in 2021-22. He completed his 5-year tenure on May 15, 2023 and has since ceased to be a director of the company.

Ambani’s wife Nita, who was a non-executive director on the company’s board, earned 6 lakh (more) as meeting fee. 5 lakh in 2021-22) and second ₹2 crore commission for 2022-23 (unchanged from last financial year). He got it in 2020-21 8 lakh sitting fee and others 1.65 crore commission.

Apart from Nita Ambani, other non-executive directors include Deepak C Jain, Raghunath A Mashelkar, Adil Zainulbhai, Raminder Singh Gujral, Shumeet Banerjee, former SBI chairperson Arundhati Bhattacharya, former CVC KV Chaudhary and Saudi Sovereign Wealth Fund nominee Yasir Othman H Al. Rumayyan is included. All independent directors got a 2 crore commission and sitting fee.

Sitting fee was paid to KV Kamath, who was appointed to the Reliance board in January 2023 3 lakhs and commission 39 lakhs.

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