Mukesh Ambani’s three children, twins Akash and Isha (both 31) and Anant (28), would receive only a sitting fee and a commission on the firm’s profit. This was announced by RIL in a resolution seeking shareholder approval for the appointment of Ambani’s children to the board
Mukesh Ambani’s children, Akash, Anant, and Isha, will not be paid a salary as board members of Reliance Industries Ltd (RIL). They will only receive a fee for attending board and committee meetings. All three of them are directors of RIL.
According to a PTI report, while Ambani, 66, has received no compensation from the firm since the fiscal year 2020-21, other executive directors, including his cousins Nikhil and Hital, are paid a salary, perquisites, allowances, and commission.
His three children, twins Akash and Isha (both 31) and Anant (28), would receive only a sitting fee and a commission on the firm’s profit. This was announced by RIL in a resolution seeking shareholder approval for the appointment of Ambani’s children to the board.
The terms of the appointment of RIL chairman Mukesh Ambani’s children, Akash, Anant, and Isha, to the board of Reliance Industries Limited (RIL) are the same as the ones on which his wife Nita was appointed to the board in 2014.
This means that the children will not receive a salary, but will only be paid a sitting fee for board and committee meeting. They will also not be eligible for any other remuneration or benefits from RIL, such as stock options, bonuses, or commissions.
Nita Ambani earned 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 latest annual report.
Ambani, 66, announced last month at the company’s annual shareholders meeting that his three children, Akash, Isha, and Anant, will be appointed into Reliance’s board of directors (BoD).
He also indicated that he will remain the company’s chairman and CEO for another five years, with an emphasis on developing and empowering its ‘next-gen’ executives.
Reliance has already mailed a postal ballot to shareholders seeking approval for their appointment 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,” the notice said.
Reliance has five primary verticals: the oil-to-chemical (O2C) industry, which houses the world’s largest single-location refining complex and petrochemical plants, telecom and digital business, retail (both physical and online), new energy, and recently announced financial services.
Ambani first mentioned a succession plan for the oil-to-telecom conglomerate in 2022, when he declared that each of his three children will oversee different parts of the company (Akash would oversee telecom, Isha would oversee retail, and Anant would oversee new energy).
He did not reveal Reliance’s mainstay oil-to-chemicals or O2C business division’s succession strategy.
Reliance shareholders approved Ambani’s reappointment as CEO of India’s most valuable firm at the company’s annual general meeting (AGM) last month. And, as in the previous three years, he has chosen not to be paid during this time.
Nita resigned as a Reliance director as part of the succession planning, but she has been made a permanent invitee to all board meetings – a status that none of the board members have – Mukesh Ambani and other directors need shareholders’ approval for any extension beyond their current approved terms, but she will remain on the board in perpetuity.