Mumbai, April 30
Reliance Industries Ltd has announced that it will reduce the salaries of some of its employees in the hydrocarbon division by 10 per cent in view of the “adverse impact” of the coronavirus pandemic on fuel demand.
The company’s board of directors would forgo 30 per cent to 50 per cent of their salary, and Chairman Mukesh Ambani, India’s richest man, his entire compensation, according to a letter signed by Reliance Industries Executive Director Hital R Meswani.
These pay cuts would apply to the employees in the hydrocarbon division who are earning more than Rs 15 lakh a year. Those earning less than that would not be impacted, the letter clarified.
“The hydrocarbons business has been adversely impacted due to reduction in demand for refined products and petrochemicals.
This has of course put pressure on our hydrocarbons business necessitating optimisation and cost reduction across all fronts,” said the letter.
The annual cash bonus and performance-linked incentives which are normally paid in the first quarter of a year have also been deferred.
The letter said that the company would “closely monitor the economic and business environment,” and re-evaluate its response to the situation on a continuous basis “to improve the earning capacity” of the business.