Mukesh Ambani sets 'example' by taking hefty salary cut
Mumbai: Aiming to set a "personal example" of moderation in executive salaries, Reliance Industries Thursday said its chief Mukesh Ambani has decided to lower his pay package by nearly two-thirds to Rs 15 crore for 2008-09.
At the same time, India's most valued corporate house also announced a new structure for salaries and remuneration of top executives wherein the pay packets would be capped, as
against the prevailing system of commission linked to profits.
As a result of scaling down of his package from over Rs 44 crore in 2007-08 to Rs 15 crore, Mukesh Ambani would get a lot less than many other industrialists and executives heading companies with a size less than one-tenth of RIL.
The development comes amid debate on whether or not there should be regulation on salaries of CEOs following suggestions by Corporate Affairs Minister Salman Khursheed. The Minister had, however, felt that Boards and shareholders should decide