Reliance Communications Chairman Anil Ambani will not take any salary or commission in the current financial year as the company has been reeling under immense debt and credit downgrades.The top management of the company has also decided to defer their personal pay by 21 days till the end of this year.
No salary for Anil Ambani from Reliance Communications this year.
RCom is facing stiff competition from other telecom service providers, including the recent-entrant Reliance Jio owned by his brother Mukesh Ambani.
The company has defaulted on some of the payments to lenders and it has received time till December for strategic restructuring plan under which it will get a 7-month standstill to service loans amounting to Rs. 45,000 crore.Ambani has said that the debt burden will be reduced to Rs. 20,000 crore with two deals by September, before the December deadline given by the lenders.
RCom said Aircel and Brookfield deals are targeted to close by September 30, 2017 subject to approvals and will reduce debt by nearly 60 per cent or about Rs. 25,000 crore.The company has been reeling under a slew of rating downgrades over the last few days, battering its stock. Shares of RCom were trading at 18.2 a unit, up 0.83 per cent, in the afternoon on BSE.
Rcom’s 2015-2016 annual report showed no salary or commission paid to the chairman except sitting fee of ₹ 5.6 lakh for attending board and committee meetings.In 2011-2012, Anil Ambani took a massive two-third cut in his salary to ₹ 5.5 crore from the four listed companies compared to ₹ 17 crore in the year ago period.