At a time when it has become a norm for top notch officials to take a hefty pay hike almost every year, it has been reported that Reliance Industries Chairman Mukesh Ambani has not taken any raise for the last nine years and capped annual package at Rs 15 crore for FY 2017.
But what is more significant in all is the fact that he gave other officials annual increment.
It has been reported that Ambani kept his salary, perquisites, allowances and commissions capped at Rs 15 crore since 2008-09, forgoing almost Rs 24 crore per annum.
RIL released its annual report today in which it said: "The chairman and managing director's compensation has been set at Rs 15 crore as against Rs 38.75 crore as approved, reflecting his desire to continue to set a personal example for moderation in managerial compensation levels."
According to the report, Ambani was the top-paid executive in India with an annual compensation package of Rs 44 crore till 2007-08. However, in 2009, he capped his package at Rs 15 crore. While Ambani's annual package remain constant for nine years, other senior officials like executive directors on RIL's board received substantial hike on their annual package.
"The compensation of Ambani's cousins Nikhil R Meswani and Hital R Meswani rose to Rs 16.58 crore each against Rs 14.42 crore and Rs 14.41 crore respectively in 2016," the report said.
This report could set an example for those IT sector bosses who favour massive pay hike irrespective of the differences among the board members.
In last few months, large scale layoffs were reported in IT sector due to slow growth in the industry.
However, companies like Infosys gave hefty pay hike to their top level executives.
Infosys' pay hike to top executives did not go down well with some of the company founders who suggested the high rank officials 'to take some salary cuts'.
Speaking on how can jobs be protected in the industry, Infosys co-founder N R Narayana Murthy said: "I have a feeling that it is possible for us to protect the jobs of youngsters if the senior management people were to make some minor adjustments - adjustment of taking salary cuts."
Mukesh Ambani's salary decision now may inspire many other leaders to follow suit and hire instead of laying off the entry level officials.
