Reliance Industries chairman and Asia’s richest man Mukesh Ambani has decided to forego his entire salary for the full year, as the ongoing coronavirus crisis has not even spared India’s most valuable company.
Reliance Industries chairman and Asia’s richest man Mukesh Ambani has decided to forego his entire salary of Rs 15 crore a year, as the ongoing coronavirus crisis has not even spared India’s most valuable company. RIL’s entire board and senior leaders of the gas and oil division will take salary cuts of up to 50%, Reuters reported citing a company letter. On the other hand, employees earning more than Rs 15 lakh a year will bear a salary cut of 10%, while the cuts will be 30% to 50% for senior executives, Reuters added. Those earning below Rs 15 lakh a year will not face any cuts.
“The Hydrocarbons business has been adversely impacted due to reduction in demand for refined products and petrochemicals. This has of course put pressure on our Hydrocarbons business necessitating organization and cost reduction across all fronts,” Hital R Meswani said in the letter to employees, according to the Reuters report. The annual cash bonuses and performance linked incentives have also been postponed to a later date. The coronavirus outbreak has posed challenges to India and the world. Reliance Industries Ltd. is no exception in a calamity which has hurt all societies, industries and business, the company said. RIL is due to announce its quarterly results today.
India’s crude processing has taken a drastic hit in March and fell 5.7% from a year earlier, as the coronavirus crisis and travel restrictions have taken a massive toll on demand for fuel. The same has also forced refineries to cut output. Meanwhile, US-based social media platform Facebook has bought about 9.99% equity stake in RIL’s telecom division Reliance Jio as the company looks to get a strong foothold in India.
The current lockdown has not spared many industries with aviation, retail and hospitality taking worst hit.