Reliance Industries Limited has declared that Chairman Mukesh Ambani has agreed to forgo his entire remittance starting April 1 while the company’s board members and senior leaders will take 30-50% pay cuts. Reliance Industries Limited added that employees in hydrocarbons division earning over ₹15 lakh per annum will face a 10% cut in fixed pay. Reliance said, annual bonuses usually paid in the first quarter also stand delayed.
Reliance Industries Limited chairman Mukesh Ambani will abandon his entire salary, while the will senior executives take a 30-50% cut in compensation until the impact of coronavirus pandemic sustains.
RIL Chairman Mukesh Ambani had forgone his salary at Rs 15 crore since fiscal 2009 even as remunerations of Reliance Industries Limited directors rose in subsequent financial years. RIL said its chairman Mukesh Ambani voluntarily decided to abandon his salary until all the RIL businesses are fully back to their earnings potential.
Reliance Industries Limited’s hydrocarbon business has been badly affected by the nation-wide lockdown amid coronavirus outbreak. In a message to employees, Reliance Industries Limited said senior executives whose annual salary is more than Rs 15 lakh will see their pay dedication by 10% from April.
RIL further said that it has delayed cash bonuses and performance-linked stimulus that are used to be paid in the first quarter of a fiscal year.
The nation-wide lockdown period amid the COVID-19 pandemic has also provided various new opportunities to reorganize and digitalize business processes to generate much more changes in productivity, efficiency, and costs.
RIL said the company will take various initiatives on all fronts to strengthen the organization to become more strong in coping with business uncertainties in an erratic and uncertain world. They will help us handle these tough times with cleverness and become industry leaders.