Mukesh Ambani is currently 66 years old. As per company law, the person in charge of the company should not exceed 70 years of age. But to extend the tenure of CMD to Ambani for another five years, the condition of not exceeding 70 years will also have to be revised. This also requires special approval from the shareholders. Currently, Mukesh Ambani is allowed to hold the post of CMD till April 19, 2024. Investors’ approval is being sought to extend this till April 18, 2029.
Meanwhile, Mukesh Ambani has been a member of the Board of Directors of Reliance Industries since 1977. In July 2002, with the demise of his father and founder of the group, Dhirubhai Ambani, Mukesh Ambani took over as chairman of the company. Reliance grew rapidly under Mukesh’s leadership. After the petrochemical segment, Reliance ventured into the retail sector and then into the telecom sector and gained market dominance.
Salary refused
Mukesh Ambani, who rose to the position of Reliance chairman, had fixed his annual remuneration at Rs 15 crore for 12 years. 15 crore for the period from FY 2008-09 (April 2008 – March 2009) to FY 2020-21. But in the wake of the Covid pandemic, he waived his salary. Mukesh Ambani has not received any remuneration since 2020-21.
Similarly, Ambani’s stance is that he does not want salary and remuneration even when the tenure of the CMD post is extended till April 2029. Mukesh was of the opinion that the remuneration is sufficient after all the business units of the company, which suffered a setback due to Covid, have returned to the point where they are generating income according to their potential. The Board of Directors of Reliance Industries also agreed to this. Reliance has also decided not to pay commission or remuneration based on profit for a fixed period.
the benefit
The company recommended other benefits to Ambani, though no annual remuneration was paid. The company also reimburses expenses incurred for business travel, accommodation, etc., including for spouses and attendants, and for the use of the car for business purposes. Similarly, the company is also bearing the expenses for the protection of Mukesh Ambani and his family members.
How to get rich?
Ambani has been getting 100 times more than 100 times of his earlier remuneration of Rs 15 Crores in the form of dividend from Reliance Industries for the last 2 years. Mukesh Ambani is also the largest shareholder of Reliance Industries with a market value of more than 17 lakh crores.
