In a unique move, Mukesh Ambani, the Chairman of Reliance Industries Ltd (RIL), has announced that his three children, Akash, Anant, and Isha, who serve as board members of the company, will not receive salaries. Instead, they will be compensated solely for their participation in board and committee meetings.
This decision was outlined in a resolution presented by RIL to seek shareholder approval for the appointment of Mukesh Ambani’s children to the board. While Mukesh Ambani himself has not received compensation from the firm since the fiscal year 2020-21, other executive directors, including his cousins Nikhil and Hital, continue to receive salaries, perquisites, allowances, and commissions.
The terms of appointment for Akash, Anant, and Isha to the board mirror those that were applied when Mukesh Ambani’s wife, Nita Ambani, was appointed to the board in 2014. Under these terms, the three siblings will not be eligible for a salary but will receive a fee for attending board and committee meetings. Additionally, they will not have access to other forms of remuneration or benefits from RIL, such as stock options, bonuses, or commissions.
The decision aligns with Mukesh Ambani’s earlier succession plan, which designates specific roles within RIL for his three children: Akash overseeing telecom, Isha overseeing retail, and Anant overseeing new energy ventures. Mukesh Ambani also announced that he would continue to serve as the company’s Chairman and CEO for an additional five years, with a focus on empowering the next generation of executives.
Reliance Industries has already initiated a postal ballot process to secure shareholder approval for the appointment of Mukesh Ambani’s children to the board.
The notice issued by RIL regarding the appointment stated, “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 decision reflects the broader trend of succession planning in major conglomerates, ensuring continuity and the involvement of the next generation while emphasizing performance-based compensation.
