Mukesh Ambani missed payments because Reliance lowers pay by up to 50%
Mukesh Ambani, Asia's wealthiest individual, has agreed to forgo any of his salary as Reliance Industries Limited has chosen to slash wages for its workers in its hydrocarbon business owing to coronavirus crisis. Reliance said in a letter to its staff, "The COVID19 pandemic has raised unimaginable threats for India and the nation. All communities, sectors and companies are affected, and reliance is no exception.”.
According to the letter, Chairman Mukesh Ambani does not obtain any compensation effective from April 1, while the board of directors, comprising managing officers, members of the executive committee and senior leaders, does repay 30-50 percent of their compensation. Employees with an annual wage of more than Rs 15 lakh will earn a deduction of 10 per cent whereas employees with a pay of less than Rs 15 lakh will earn a deduction 15 lakh per annum will remain unaffected..
"The hydrocarbon business was adversely affected by a fall in demand for refined products and petrochemicals. Naturally this has put pressure on a hydrocarbon business requiring optimisation and cost reduction across all fronts. The situation needs us to have a razor-sharp eye on running expenses and fixed costs and both of us need to help make that possible, reads the letter.
The Reliance has also postponed regular cash rewards and performance-linked benefits that are normally paid out in the first quarter of the year.
"We must track the economic and market climate closely, constantly re-evaluate our approach to the situation and aim to increase the earning potential of our company," the letter states.