Akash, Isha, Anant Ambani Not To Draw Salaries, To Only Get Fee For Board Meets; Know How Much Nita Ambani Gets

Reliance Industries in a resolution announced that Mukesh Ambani’s kids Anant, Isha and Akash Ambani, who are directors of Reliance Industries, will be paid only a fee for attending board and committee meetings, adding that it is seeking shareholder nod for their appointment on its board.

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Ambani announced in the company's last annual meeting with shareholders that his three children Akash, Isha and Anant would be inducted into Reliance's board of directors (BoD).

Meanwhile, Mukesh Ambani has not drawn any salary since the 2020-21 fiscal year, however, other executive directors including his cousins Nikhil and Hital are being paid a salary, perquisites, allowances and commission.

Mukesh Ambani’s all three kids will receive a sitting fee and a commission based on the firm's profit. 

"They shall be paid remuneration by way of fee for attending meetings of the Board or Committees thereof or for any other meetings as may be decided by the Board, reimbursement of expenses for participating in the Board and other meetings and profit-related commission," the notice said.

As per reports, the terms of appointment of the three are the same as Nita Ambani was appointed to the company board in 2014. Nita Ambani earned a sitting fee of Rs 6 lakh and a commission of Rs 2 crore in the 2022-23 fiscal year (April 2022 to March 2023), according to the company's latest annual report.

Mukesh Ambani, who has been on the board of Reliance since 1977, had capped  ₹15 crore for a span of 11 years, starting the financial year 2008-09 (April 2008 to March 2009). However, from FY21 onwards, in response to the COVID-19 pandemic, he voluntarily chose to forgo his salary until the company and all its businesses fully regained their earnings potential.

Furthermore, Ambani has not been paid any salary and profit-based commission for three years in a row beginning FY21. Upon his request, the company's board has proposed not to remunerate him with any salary or profit-based commission for the upcoming term spanning from April 19, 2024, to April 18, 2029.

In the annual report for 2022-23, it was disclosed that the remuneration for Nikhil and Hital Meswani, his cousins, increased to Rs 25 crore each, with Rs 17.28 crore in commission, which remained unchanged from the previous fiscal year.

The Executive Directors, P M S Prasad and Pawan Kumar Kapil, also witnessed an uptick in their remuneration.

Prasad's earnings for 2022-23 amounted to Rs 13.50 crore, which included performance-linked incentives for 2021-22 that were disbursed during 2022-23. In the preceding fiscal year, he earned Rs 11.89 crore.

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Kapil's remuneration saw a rise to Rs 4.40 crore, up from Rs 4.22 crore in 2021-22. Notably, he concluded his 5-year tenure on May 15, 2023, and subsequently ceased to be a director of the company.