On Thursday, Reliance Industries Limited (RIL) announced widespread pay cuts for its employees receiving higher compensation amid the COVID0-19 pandemic. Chairman and MD, Mukesh Ambani, whose is also the richest person in India, will not be taking any compensation, according to the company's release.
In a statement, the company said that its board of directors, including Executive Directors and other senior leaders, will see a 30-50 percent reduction in their compensation.
Employees in the hydrocarbon division who receive over Rs 15 lakh as fixed annual pay will see 10 percent reduction in their salaries due to "adverse impact" of the coronavirus pandemic on fuel demand, the company's statement said.
Salaries of those who earn less than Rs 15 lakh will not be affected."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," the company said.
Performance-based pay and bonuses, that are generally paid at the start of the financial year, stand deferred.
RIL will be re-evaluating its response to the situation on a continuous basis "to improve the earning capacity" of the business, it said.
The company is scheduled to announce its Q4 financial results today.