As Reliance Industries Ltd. directors, Mukesh Ambani’s three children will only receive a fee for attending board and committee meetings, the company stated in a resolution seeking shareholder approval for their appointment. Ambani, 66, has received no salary from the company since the 2020–21 fiscal year, while other executive directors, such as his cousins Nikhil and Hital, are compensated with salaries, perquisites, allowances, and commission.
The only compensation for his three children, twins Akash and Isha (both 31) and Anant (28), will be a sitting fee and a percentage of the company’s profits.
The three were appointed under the identical conditions that Ambani’s wife Nita was named to the board of the business in 2014. In the fiscal year 2022–23 (April 2022–March 2023), she received a sitting fee of Rs 6 lakh and a commission of Rs 2 crore, according to the most recent annual report of the business.
Last month, Ambani, 66, announced that his three children Akash, Isha, and Anant would join Reliance’s board of directors (BoD) at the company’s annual shareholders meeting.
He added that he will serve as the company’s chairman and CEO for a further five years with a focus on developing and supporting its “next-gen” executives.
Reliance has just distributed a postal vote to shareholders asking for approval for their election to the company’s board of directors.
“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,” according to the notice.
Oil-to-chemical (O2C) industry, which includes the largest single-location refining complex and petrochemical plants in the world, telecom and digital business, retail, and financial services.
Ambani initially discussed a succession plan at the oil-to-telecom conglomerate in 2022, when he said that each of his three children would be in charge of a different department inside the business (Akash would be in charge of telecom, Isha would be in charge of retail, and Anant would be in charge of new energy).
At the annual general meeting (AGM) held last month, Reliance shareholders approved Ambani’s request for an additional five-year term as the company’s CEO, lasting until 2029. And like the previous three years, he decided to take no pay throughout this time.