Why Mukesh Ambani is happy even without a raise for the last 10 years

Reliance Industries chairman Mukesh Ambani, India's richest man, has not got a raise for 10 years. Ambani has kept his salary, perquisites and allowances and commission at Rs 15 crore since 2008-09, forgoing almost Rs 24 crore per annum.

"Compensation of Mukesh D Ambani, Chairman and Managing Director, has been set at Rs 15 crore, reflecting his desire to continue to set a personal example for moderation in
managerial compensation levels," RIL said in its latest annual report.


Imagine the frustration and bitterness of an employee who has to go without a raise for 10 years in a row. Yet, Ambani won't be an unhappy man—as far as his income is concerned. Here's why?

Salary is a small component of Ambani's total income, so small he can even forgo it without making any significant dent in his income. His cumulative salary over the last 10 years was Rs 150 crore, just 1 per cent of his dividend income, according to a BloombergQuint report. The single-largest shareholder of the company at 47.4%, Ambani has earned Rs 14,553 crore, just from dividend declared by the company in the same period. And his income from Reliance Industries Ltd. has almost doubled in the same period.

Since 2008, Reliance has paid out Rs 31,616 crore in dividend, the report says. Ambani (and his family) being the promoter and majority shareholder has received a cumulative Rs 14,553 crore in dividend through his stake in the company.

Ambani voluntarily capped his compensation at Rs 15 crore in October 2009 amid a debate over right-sizing of CEO salaries. His salary cap continued even as all other executive directors saw their remunerations go up.