Reliance Industries To Cut Salaries In Hydrocarbon Division; Mukesh Ambani To Forgo Entire Compensation

Reliance Industries To Cut Salaries In Hydrocarbon Division; Mukesh Ambani To Forgo Entire CompensationRIL chairperson Mukesh Ambani (Photo by Manoj Patil/Hindustan Times via Getty Images)

Mukesh Ambani’s Reliance Industries Limited (RIL) is going cut 10 per cent salary for some of its employees in the hydrocarbon division due to the “adverse impact” of the novel coronavirus pandemic on fuel demand worldwide.

The decision is only going to impact the employees in the aforementioned division who are earning more than Rs 15 lakh per year, and those earning less will not be impacted, the company said in a note signed by Reliance Industries Executive Director Hital R Meswani.

Apart from this, RIL’s board of directors would forgo their salaries from 30 per cent to 50 per cent, while company’s chairperson Mukesh Ambani will give up his entire compensation.

“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 optimisation and cost reduction across all fronts,” said the note.

Extra benefits to the employees such as annual cash bonus, performance-based incentives have also been postponed and will not be paid at the usual time of first quarter of a year.

While the statement from Meswani said the company would be closely monitor the economic and business environment, it also said it would re-evaluate its response to the situation on a continuously “to improve the earning capacity” of the business.