Mukesh Ambani Continues to Draw ₹0 Salary from Reliance

Mukesh Ambani Continues to Draw ₹0 Salary from Reliance

Why in News Mukesh Ambani Continues to Draw ₹0 Salary from Reliance? 

Recently Mukesh Ambani decided to take no salary from Reliance Industries for the fifth year in a row. This decision shows his focus on the company’s growth during challenging times. 

Salary Forgo by Mukesh Ambani

• Zero-Salary Decision: Mukesh Ambani, the chairman and managing director of Reliance Industries Ltd (RIL), first chose to stop taking any salary in the financial year 2020-21. This was during the height of the COVID-19 pandemic when several businesses faced severe challenges. His choice was part of a broader effort to show solidarity with employees and ensure financial resilience for the company. From that year onward, he has not accepted any salary, allowances, or bonuses, making this decision a continuing practice for five straight financial years up to FY2024-25.

• Previous Salary Structure: Before this change, Ambani had voluntarily limited his annual salary to ₹15 crore. This cap remained in place from FY2008-09 to FY2019-20, even as Reliance Industries continued to expand in multiple sectors. The self-imposed limit stood out in India’s corporate environment, where top executives often take home higher pay packages. 

Compensation for Family and Board Members

• Ambani Family: The Ambani family owns a major shareholding in Reliance Industries Ltd. In the financial year 2023-24, the company declared a dividend payout of ₹10 per share. The family owns about 332.27 crore shares. This ownership brought them a total dividend income of ₹3,322.7 crore in that year. This amount came to the family even though Mukesh Ambani took no salary for the fifth year in a row. The dividend was based on the company’s strong financial results and high profitability.

• • • The family’s substantial 50.33% ownership in Reliance remains the primary contributor to their income. The dividend declared in FY2023-24 alone gave them income worth over ₹3,322 crore, without counting any other investments. 

• Non-Executive Directors: In FY2024-25, each of the three children earned ₹2.31 crore from their board positions. This total included a ₹0.06 crore sitting fee and a ₹2.25 crore commission. In the previous year, FY2023-24, each earned ₹1.01 crore, with a ₹0.04 crore sitting fee and ₹0.97 crore commission. 

• Other Board Members: Executive directors like Nikhil R. Meswani and Hital R. Meswani received ₹25 crore each in FY2024-25. This figure included ₹7.28 crore as salary and perquisites, ₹0.44 crore in retiral benefits, and ₹17.28 crore as commission. P. M. S. Prasad earned ₹19.96 crore, with most of it being salary and perquisites, plus ₹0.59 crore in retiral benefits. 

• Former Board Member Nita Ambani: After stepping down from the board in August 2023, Nita Ambani continued to receive remuneration for her role in the 2023-24 financial year. Her earnings for that period included ₹0.02 crore as sitting fees and ₹0.97 crore as commission. She no longer appears in the remuneration list for FY2024-25 as she has moved away from a formal board role.

Possible Reasons Behind the Move

• Symbolic leadership: Mukesh Ambani stopped taking a salary from Reliance in FY2020-21. He set a public example for the company. This choice signals pay moderation. The act can boost internal morale during hard times.

• Focus on ownership income: Ambani earns mainly from dividends and share holdings. Reliance declared a ₹10 per share dividend for FY2023-24. The Ambani family received handsome dividends from that. He can gain more by holding equity than by drawing a fixed salary. This route links his pay to company performance.

• Focus on Long-Term: By forgoing salary, Ambani frees funds that could be used for business growth in sectors like telecom, energy, and retail. This aligns with his long-term vision for Reliance and shows his commitment to reinvestment over personal gain.

Mukesh Ambani’s Net Worth

• Mukesh Ambani leads Reliance Industries Ltd as its chairman and managing director. He was born in April 1957 in Aden (now part of Yemen). 
• He joined Reliance in the early 1980s to help expand the company founded by his father. 
• He studied chemical engineering and briefly attended Stanford for an MBA before returning home.
• In 2025, Ambani holds the position of the wealthiest individual in both India and Asia.
• As reported by Forbes on 7 August 2025, Mukesh Ambani’s total wealth stands at $103.3 billion, which is roughly ₹9.06 lakh crore.
• He is ranked as the 18th richest person globally and maintains the top spot as India’s wealthiest person.
• The company holds businesses in telecom, retail, petrochemicals, media, and green energy. 
• Jio, the telecom arm of Reliance, revolutionized India’s digital landscape and is a major wealth driver for Ambani.
• In 2020, Jio Platforms raised over $20 billion from global firms like Facebook, Google, and Silver Lake. 
• His commitment to innovation and expansion ensures that Reliance remains a dominant force, which directly supports the growth of his personal fortune.