Mukesh Ambani, chairman of Reliance Industries, has opted to draw no salary for the fifth consecutive year, as detailed in the company’s latest annual report. Ambani, who is one of the world’s richest individuals with an estimated net worth just below $100 billion, relies primarily on dividend income from his extensive shareholding in Reliance Industries as his main source of earnings.
Ever since the onset of the COVID-19 pandemic in 2020, Ambani has voluntarily chosen to forgo his salary, allowances, and perquisites. His decision was initially motivated by the economic challenges posed by the pandemic, and he continues to maintain this stance as the company works to maximise its earnings potential fully.
Ambani’s financial reliance on dividends was highlighted as he directly holds 1.61 crore shares in Reliance, resulting in a dividend income of ₹8.85 crore at the declared rate of ₹5.50 per share for the fiscal year 2024-25. Additionally, the promoter group firms he controls possess a majority stake in the company, which translates to a substantial dividend income of ₹3,655 crore.
Before opting for a nil salary, Ambani had capped his annual remuneration at ₹15 crore from the financial year 2008-09 up to 2019-20, setting an example of moderation in executive compensation. This move was part of his broader strategy to align with the company’s growth and societal welfare.
In contrast, Ambani’s children, Isha, Akash, and Anant, appointed to the Reliance board in 2023, received nominal sitting fees and commissions. Anant, the youngest, has since been appointed as an executive director, with a new salary range between ₹10 crore and ₹20 crore for this fiscal year.
Other members of the board, including independent directors, received consistent compensation with previous years, maintaining a commission of ₹2.25 crore alongside sitting fees. This reflects Reliance’s structured approach to board member remuneration amidst broader strategic adjustments.
The remuneration packages of Ambani’s cousins, Nikhil and Hital Meswani, saw a slight decline, while Executive Director P M S Prasad enjoyed an increase in his earnings, attributed to performance-linked incentives. These changes illustrate the company’s flexible yet performance-driven compensation strategy.
Ambani’s decision to continue without salary underscores a commitment to steering the company through sustained growth and stability. As Reliance navigates complex market dynamics, the chairman’s actions resonate with his longstanding approach to balancing leadership responsibility with financial prudence.
