Pay Cuts for employees, Chairman Mukesh Ambani to forgo Entire Salary in Reliance Industries
Reliance Industries’ employees are to face a pay cut of up to 50 percent as the company faces lower profit courtesy COVID-19 pandemic. The conglomerate informed its employees about it on April 29th. While employees below Rs 15 LPA mark won’t face any pay cut, those earning more than Rs 15 LPA will face a 10 percent cut. Senior executives, however, will face cuts between 30 and 50 percent.
Executive Director Hital R Meswani claimed that the hydrocarbons business has seen a decline due to less demand for refined products and patrochemicals. The company, thus, needs to focus on its operational and fixed costs.
He also added that Mr Ambani has agreed to forgo his entire compensation.
Annual cash bonus and performance-linked incentives paid in the first quarter have also been postponed.
The Ambani led company is due to announce its quarterly results on Thursday. The company said that it would consider its first rights issue in almost 30 years as a part of its broader commitment to eliminating net debt by March 2021, which by the end of 2019 was approximately $43 billion.
Plans of Facebook buying a 9.99 percent stake in the company for $5.7 billion is also doing rounds.
On the BSE, RIL closed at Rs 1467.05, 2.86 percent higher.