Mukesh Ambani continues zero salary for fourth year in row
This move reflects a broader strategy to maintain a focus on long-term corporate health rather than short-term personal gain.
Mukesh Ambani continues zero salary for the fourth year in a row, reflecting his dedication to setting a personal example and demonstrating corporate responsibility. This decision, which started in the financial year 2020-21, showcases Ambani’s response to the severe impacts of the COVID-19 pandemic on India’s society and economy. By choosing not to draw a salary, Ambani underscores the importance of executive pay restraint in times of crisis.
A Strategic Corporate Move
Since the onset of the COVID-19 pandemic in 2020, Mukesh Ambani, the richest person in Asia, has opted not to take a salary from Reliance Industries. His initial decision not to draw a salary for the financial year 2020-21 was driven by the severe impact of the pandemic on the Indian economy and society. Ambani extended this decision through the financial years 2021-22, 2022-23, and now into 2023-24. Prior to this, Ambani’s salary was set at Rs 15 crore (approximately $2 million) annually since 2008-09. This move reflects a broader strategy to maintain a focus on long-term corporate health rather than short-term personal gain.
Reliance Industries, under Ambani’s stewardship, has achieved remarkable milestones in market value, revenues, and contributions to social causes. For the financial year 2023-24, the company reported a market value surpassing Rs 20 lakh crore (about $240 billion), making it the first Indian company to reach this level. Reliance’s net profit for the year stood at Rs 79,020 crore, and its total revenues exceeded Rs 10 lakh crore. The company’s exports reached Rs 2,99,832 crore (about USD 35.9 billion), setting new records in both market performance and operational scale.
Achievements and Financial Performance
Mukesh Ambani’s decision to forgo a salary is a strategic move that aligns with Reliance Industries’ impressive financial performance. For the financial year 2023-24, Reliance Industries reported a market value exceeding Rs 20 lakh crore (about $240 billion), marking a historic milestone as the first Indian company to reach this level. The company achieved new records in revenue, with total revenues surpassing Rs 10 lakh crore, and reported a net profit of Rs 79,020 crore. Additionally, Reliance’s exports reached Rs 2,99,832 crore (about USD 35.9 billion), further highlighting the company’s strong market presence.
Mukesh Ambani’s decision to maintain a zero salary comes amid Reliance Industries’ notable contributions to India’s economy and society. The company paid Rs 186,440 crore in taxes and duties for the financial year 2023-24, accounting for 3.86% of the government’s budgeted expenditure for 2024-25. This substantial tax contribution is more than the government’s planned spending on agriculture, which is Rs 1.52 lakh crore. It also marks the sixth consecutive year Reliance has contributed over Rs 1 lakh crore in taxes, with a total contribution exceeding Rs 10 lakh crore over the past seven years.
Mukesh Ambani Continues Zero Salary: Contributions and Social Impact
Mukesh Ambani’s decision to maintain a zero salary comes as Reliance Industries made significant tax contributions and investments in social causes. For the financial year 2023-24, Reliance paid Rs 186,440 crore in taxes and duties, accounting for 3.86% of India’s budgeted expenditure for 2024-25, which is Rs 48.21 lakh crore. This substantial contribution exceeds the government’s planned spending on agriculture, which is Rs 1.52 lakh crore. It marks the sixth consecutive year that Reliance has contributed over Rs 1 lakh crore in taxes. Over the past seven years, from FY18 to FY24, Reliance’s total tax contributions have surpassed Rs 10 lakh crore.
Reliance Industries has also made notable investments in social causes through the Reliance Foundation. In the financial year 2023-24, the company spent Rs 1,592 crore on various social initiatives, representing a 25% increase from the previous year. Over the past three years, Reliance’s total spending on social causes has exceeded Rs 4,000 crore, making it the highest among Indian companies.
Mukesh Ambani has expressed pride in Reliance’s role in supporting India’s development. In a statement, he highlighted the company’s commitment to finding innovative solutions for India’s growth. He remarked, “It is this spirit of India and Indians that inspires Reliance to innovate and excel in every venture.”
In summary, Mukesh Ambani continues to set a powerful example by opting for a zero salary, reflecting his commitment to both corporate governance and societal contribution. Reliance Industries’ record-breaking achievements in market value, revenue, and tax contributions, combined with its significant investments in social causes, underscore the company’s pivotal role in India’s economic and social landscape. Ambani’s personal decision to forgo a salary enhances the company’s public image and reinforces its dedication to fostering national development and supporting societal well-being.
You might also be interested in – Nita Ambani unanimously re-elected as IOC member
