Hydrocarbon business has been severely hit by the coronavirus pandemic and many salary cuts and bonus deferments have announced in Reliance Industries. Because of that Asia’s richest man, Mukesh Ambani has decided to forgo his entire compensation while senior executives will have 30-50% pay cuts.
Hydrocarbon business is severely affected by stringent lockdowns as there is very little or no demand for refined products and petrochemicals. Due to which the companies are struggling and they are looking for economical plans. Reliance Industries, India’s most valued company, has decided to cut costs by reducing compensations to employees, among other measures, to face challenges faced by its businesses. There will be no job-cuts in RIL.
According to the letter, effective from April 1, Chairman Mukesh Ambani won’t take any compensation whereas the board of directors, including executive directors, executive committee members, and senior leaders, will forgo 30-50 per cent of their compensation. Employees with a salary of more than Rs 15 lakh per annum will have a deduction of 10 per cent while employees with a salary of less than Rs 15 lakh per annum will remain unaffected.
“We will closely monitor the economic and business environment, re-evaluate our response to the situation continuously and strive to improve the earning capacity of our business,” reads the letter.
Annual cash bonus and performance-linked incentives that are usually rewarded in the first quarter of the year have also been delayed until the situation becomes normal.