As declared by Reliance Industries in its annual accounts for the FY 2012-13 "The Chairman and Managing Director's compensation has been set at Rs.15 crore as against Rs.38.93 crore he is eligible as per shareholders' approval reflecting his desire to continue to set a personal example in managerial compensation levels".
Accordingly, as widely reported by the media, by taking only Rs.15 crore Mr. Mukesh Ambani is forgoing Rs.24 crore as salary.
What a 'cruel' joke to play on the unsuspecting public!
As per the results declared for FY 2012-13, Reliance will pay out Rs.2628 crore as dividend.
As per the shareholding pattern as on Mar 31, 2013, promoter and promoter companies hold 45.35%.
This works out to Rs.1192 crore that Mr. Mukesh Ambani and his family and family-owned companies would receive as dividend.
So the seemingly huge sum of Rs.24 crore forgone by Mr. Mukesh Ambani works out to a mere 2%.
To put the numbers in perspective : Suppose your salary is Rs.50,000 p.m. i.e. Rs.6 lakh per annum. Then forgoing 2% would mean an amount of mere Rs.12,000. I guess you too can afford to forgo this petty amount (especially if you get this kind of publicity). So what's the big deal if Mr. Mukesh Ambani is doing so.
I am sure the so-called 'informed media' could have reported the dividend numbers too to give a right perspective to the news.
By the way, these numbers pertain to Reliance Industries only. What about salary/dividends from the other group companies in the Reliance Group?
(Also, as you may be aware, on salary the income tax is 30%, whereas dividend is taxed at 15% only.)
Of course, there are absolutely no issues with Mr. Ambani taking a Rs.1000+ crore payout. He fully deserves it. However, trying to take a moral high ground, on such an insignificant amount,is not in the right spirit.
Accordingly, as widely reported by the media, by taking only Rs.15 crore Mr. Mukesh Ambani is forgoing Rs.24 crore as salary.
What a 'cruel' joke to play on the unsuspecting public!
As per the results declared for FY 2012-13, Reliance will pay out Rs.2628 crore as dividend.
As per the shareholding pattern as on Mar 31, 2013, promoter and promoter companies hold 45.35%.
This works out to Rs.1192 crore that Mr. Mukesh Ambani and his family and family-owned companies would receive as dividend.
So the seemingly huge sum of Rs.24 crore forgone by Mr. Mukesh Ambani works out to a mere 2%.
To put the numbers in perspective : Suppose your salary is Rs.50,000 p.m. i.e. Rs.6 lakh per annum. Then forgoing 2% would mean an amount of mere Rs.12,000. I guess you too can afford to forgo this petty amount (especially if you get this kind of publicity). So what's the big deal if Mr. Mukesh Ambani is doing so.
I am sure the so-called 'informed media' could have reported the dividend numbers too to give a right perspective to the news.
By the way, these numbers pertain to Reliance Industries only. What about salary/dividends from the other group companies in the Reliance Group?
(Also, as you may be aware, on salary the income tax is 30%, whereas dividend is taxed at 15% only.)
Of course, there are absolutely no issues with Mr. Ambani taking a Rs.1000+ crore payout. He fully deserves it. However, trying to take a moral high ground, on such an insignificant amount,is not in the right spirit.
