we all are aware that most of the CEOs and Celebrities across the world earn big bucks. And at the same time, we as common people are keen to know about how much do these celebrities earn.
When we think about India’s richest people, the first name that strikes our mind is none other than Mukesh Ambani, the business czar.
In the coming days, it will be more interesting to know how this business magnet earns and saves annually. According to the annual report of the company Mukesh Ambani has kept his salary unchanged from fiscal year 2008, at 15 Crore.
Previously Ambani was getting almost up to 24 crore as his salary, through which he gained a lot of media attention. This was the time when Prime Minister Manmohan Singh put a cap on CEOs salaries, in a meeting of business leaders in 2007. Perhaps, in the year 2008, Ambani capped compensation of 15 crore.
Taking responsibility of the throne:
The Indira Gandhi administration offered private sectors to manufacture PFY (polyester filament yarn) in 1980. Despite many competitors like Tata and Birla, the license was sanctioned only to Dhirubhai’s Company.
This became the stepping stone for Mukesh Ambani to join hands with his father, when Dhirubhai Ambani pulled him out of Stanford University where he was pursuing his MBA to look after their new chain of business, the “PFY plant”. This ultimately led him drop his studies in the year 1981.
From then on, it was just not easy for Mukesh to reach the success ladder. Since, he was the son of well known business magnet, at every step he was compared to his father.
His journey as a Chairman:
It has been more than decade now; Mukesh Ambani has taken over reliance. While he has taking over as the chairman of the company he said that his father will be present in all his thoughts and actions. He went on to say that he will be measuring every action by the yardstick of his expectations.
Dhirubhai Ambani built the company from scratch to India’s first private sector global company. The task of the present CEO’s Mukesh and Anil is to strengthen the position to transform it and to ensure its growth.
It was not easy for Mukesh to reach success as there was significant pressure on RIL’s profitability. It was very clear that the net worth of the company between the year 2007 and 08 as well as from the year 2011-12 did not rise more than 3 percent over the period.
Arun Kejriwal, director of Kejriwal Research and Investment Services, who has followed Reliance India’s growth closely, says that “Barring other income, net profit growth may even have been negative. RIL’s businesses have gone through volatility due to macroeconomic conditions, and businesses in other parts of the globe have become more competitive.” But still during the decade Ambani has done it exceptionally well.
Infact, after Mukesh took over as the chairman, the company has grown both in size as well in the scale. Moreover the company has got new dimension and direction.
Today the company has established brilliantly where 75.67 percent of the profit is from petrochemicals, 48 percent for refining.
“There is a lot of confusion surrounding the company with respect to its future plans, its plans in retail, telecom and exploration and production are yet to bear fruit and nothing has really taken off in some of the areas in which it was betting big earlier like power and special economic zones.” said S.P. Tulsian, a stock analyst and long-time RIL tracker.
Apart from this, there are about 23,166 to 23,519 employees working for RIL and in the year 2012-13 the company paid overall 5, 179 crore to its staffs as salary which was 3,955 crore in the previous years.
Recently the two Ambani brothers have decided to tie up after 3 long years as they have signed up for a new deal for infrastructure in telecom business soon.
Here is a glimpse of how his remuneration was split into different section between the year 2012 and 13. There was about 4.16 crore which was considered as his basic salary 60 lakh towards the allowances, 89 lakh as retiral benefits and 9.35 crore as commission.