Winning Bizness Sports Desk
Mumbai. Reliance Industries Limited has sought approval from shareholders for the appointment of Mukesh Ambani's three children on the company's board. Meanwhile, a big development has come forth. According to a proposal brought to the board of RIL, Akash, Isha (both 31) and Anant (28) will be given only compensation in the form of fees for attending board and committee meetings. 66-year-old Mukesh Ambani himself has not taken any salary from the company since the financial year 2020-21. Now following their father's path, Akash, Isha and Anant will also not take any salary from the company. Last year, Mukesh Ambani had made his elder son Akash Ambani the chairman of Reliance Jio Infocomm Limited. Isha Ambani is handling Reliance Retail and Anant Ambani is looking after the New Energy business. However, other executive directors, including Mukesh Ambani's cousin Nikhil and Hital, receive salary, perquisites, allowances and commission from the company. The compensation structure of Mukesh Ambani's children is similar to that of his wife Nita Ambani, who joined the company's board in 2014. According to the company's latest annual report, Nita Ambani has been given a sitting fee of Rs 6 lakh and a commission of Rs 2 crore during the financial year 2022-23.
Reliance sent letter seeking approval from shareholders
Reliance has now sent a letter to the shareholders through post seeking their approval for the appointment of Akash, Isha and Anant as the company's board of directors. It has been said in this letter that the new directors will be paid compensation in the form of fees for attending the meetings of the board and its committee. Besides, they will also be given commission related to expenses and profits for attending board and other meetings. He will not take any salary from the company as a director.
Mukesh Ambani to remain the chairman and CEO
Mukesh Ambani had announced in the company's annual shareholders meeting on August 28 last month that Akash, Isha and Anant would be included in the board of directors of Reliance. He also said that he will remain the chairman and CEO of the company for the next 5 years, focusing on preparing and empowering the next generation of leaders. The board also accepted Nita Ambani's resignation in the annual shareholders meeting. The company had said that Nita Ambani will continue in the role of Founder Chairperson of Reliance Foundation. As chairperson of Reliance Foundation, Nita Ambani will continue to attend RIL board meetings. Neeta has resigned from the board of the company to devote more time to Reliance Foundation.
Akash, Isha and Anant are handling different businesses
Till now, the three children were involved only at the operating business level and none were on the board of India's largest listed company. The company had said in a stock exchange filing that the board of Reliance has approved the appointment of the three. Last year, at the 45th AGM of RIL, Mukesh Ambani had said, 'All three children have completely inherited the mentality of our founder. They are mentored on a daily basis by our senior leaders. The mentors also include me and the Board of Directors.