In view of low profitability due to the novel coronavirus outbreak, the Reliance Industries on Thursday, April 30 announced deduction in salaries up to 50%, reads a company letter by the executive director Hital R Meswani. He added that the Reliance Industries chairman, Mukesh Ambani, will forego his entire compensation.
The salary cuts and deferments has been announced for Reliance Industries’ hydrocarbon business citing pressur and low demand for refined products and petrochemicals.
Reliance Industries has decided to cut 10% salary of executives earning more than Rs 15 lakh per annum. While, the senior executives, including the board of directors’ executive directors, executive committee members and senior leaders, salaries would be deducted from 30 to 50 %. Company executives who earn less than Rs 15 lakh per annum will not see any deduction.
“The hydrocarbons business has been adversely impacted due to reduction in demand for refined products and petrochemicals. The situation demands that we maintain razor sharp focus on operating costs and fixed costs and all of us need to contribute to make this happen,” reads the company letter.
Reliance Industries has also deferred annual cash bonus and performance linked incentives, letter added.
ED Hital Meswani added that the company will closely monitor the economic & business environment, and will re-evaluate a response to the situation on a continuous basis and strive to improve the earning capacity of the business.