Mukesh Ambani, announces pay cuts in Reliance Industries.
Prime Minister Narendra Modi asked to industries not to cut jobs even in the critical situation due to the crises, there is a nationwide lockdown.
Reliance Industries, which is India’s most famous company, they are also in a struggling position by facing challenges. So, Reliance Industries head Mukesh Ambani has decided that company is going through high losses, and then he announced to salary cuts and stays the payment of hydrocarbon business’s employees due to weak demand. Not only their employees (includes the board of directors, includes executive directors, executive committee members and senior leaders) and Ambani itself will forgo 30-50% of their compensation.
Executive Director Hital Meswani said in their letter that due to the COVID-19, Lockdown reduces the demand for refined products and petrochemicals in hydrocarbon business and it leads to pressure on the business and reduce their costs.
Considering the situation of our country, in the hydrocarbon business, lower employees who earn less than Rs. 15 lakhs per annum, their salaries will not be changed or cut but who earn more than Rs. 15 lakhs per annum, their salaries will be deducted 10% in fixed pay.
Executive Director Hital Meswami also said that the company will monitor this economic situation and their business environment and also struggle to improve the earning capacity of our business. Because of this lockdown, we also have many opportunities for our business like digitalization and it improve our productivity, efficiency and cost. We will work together on these opportunities and restored our compensation level.
Rs. 15 crore, this was the salary of Ambani in 2018-19 and unchanged for the 11th consecutive years. He has no other option then to forgo the compensation because it is part of strategy to become debt free by 2021 and then everything become normal and better.
