India’s richest man Mukesh Ambani’s three children who serve as the directors of Reliance Industries Ltd will be given only a nominal fee for being a part of attending board and committee meetings. The company said the same in a resolution asking for a nod from shareholders in order to appoint them to its board.
66-year-old billionaire Mukesh Ambani didn’t draw any salary from the company from the 2020-21 fiscal year. Whereas, other executive directors such as Mukesh’s cousins Nikhil and Hital are being given a salary, perquisites, allowances, and commission.
Mukesh’s three children – twins Akash and Isha (both 31) and Anant (28 years) – will get only a sitting fee and a commission on the profit earned by the company. The rules for the appointment of Ambani’s three children are similar to the terms laid for Ambani’s wife Nita who was appointed to the board of the company in 2014. Nita Ambani was given 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 recent annual report.
In last month’s shareholders meeting, Ambani announced that his three children Akash, Isha, and Anant would be appointed to the company’s board of directors – BoD. Mukesh also mentioned that he would remain the CEO and chairman of the company for five more years as he aims to concentrate his efforts on empowering and building the next generation of leaders.
Reliance has released a postal ballot to shareholders asking for their permission to appoint Mukesh Ambani’s three children to the board of directors in the company. “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,” read the notice.
For the unversed, the parent company Reliance has five main segments – the oil-to-chemical (O2C) business that accommodates the world’s largest single-location refining complex and petrochemical plants, telecom and digital business, retail (both physical and online), new energy, and newly launched financial services.
In 2022, Mukesh Ambani spoke about a succession plan for his oil-to-telecom conglomerate. He announced that each of his three children would be leading different divisions of the company. Akash will be heading telecom, Isha to lead retail, and Anant will be heading new energy. However, Mukesh Ambani has not yet revealed about the succession plan for Reliance’s mainstay oil-to-chemicals or O2C business division.
The shareholders of the company during last month’s annual general meeting gave a nod to Mukesh Ambani by approving his five-year term till 2029 as the Head of India’s largest company. Like the last three years, he has chosen to take zero salary during the upcoming period as well.
Due to the succession planning, Nita resigned from the position of director of Reliance. However, she has been provided with a permanent invitation to all board meetings.