OBSERVATIONS AND ANALYSES
1. Separately, he and his inter-corporate investment Companies earn millions of Rupees as dividends. The salary of six million dollars he gets may be a pittance for his income. But it leads to competition among CEOs of other Companies run by family princes.
2. Mr. Mukesh Ambani is only a family scion who succeeded to his father's throne. Though the Board of Directors might have elected him as the Chairman, and the shareholders might have approved his remuneration, it is difficult to say that the shareholders might have deliberated in length and applied their minds. Public Financial Institutions have substantial stakes in giant private sector companies and they send their representatives to Board and Shareholders Meetings. It is difficult to say whether they would have spoken out their minds and what was the brief given to them by the Govt. or the Govt. Institutions.
3. In Sultanates and Moghul empires, Princes used to be sent as Governors to the States and their mettle used to be tested in suppressing rebellions by Sardars and local fiefs. In business empires also, princes and princesses who complete their Business Degrees from prestigious schools are immediately inducted into their family Companies as executives or executive trainees with an ostensible purpose of learning the tricks of the trade and also assist the father and uncles.
4. Will paying high wages to CEOs and directors, reduces their tendency to cut corners or receive under the table commissions in purchases by the Companies? This is a multi-billion dollar question. Will their associate Companies stop robbing the Group Companies in handling contracts granted to the associates? This is only a question of speculation, because none of the group Companies will disclose nor the Government will care to check. If Corporate corruption could be minimised by approving open payments, there will at least be a facade of transparency.
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