Independent director remuneration for -Mukesh Ambani

Bank of America has given shares worth nearly Rs. 11 lakh to Mukesh Ambani as part of annual retainer fee to the billionaire industrialist, who joined the US banking giants board last month. Ambani may get a total of over Rs. 1 crore of annual compensation in cash and stocks, going by the banks director compensation policy. However, the bank has not disclosed its specific director fees for Ambani, chief of energy giant Reliance Industries. Emailed queries sent to Bank of America and Reliance Industries remained unanswered on what would be Ambanis exact remuneration for his role as a director. Ambani leads one of Indias biggest corporate groups with presence spanning across energy, retail and telecom businesses and plans underway for financial services entry. As chairman and managing director of RIL, Ambani was paid Rs. 15 crore for the financial year ended 31 March, 2010. He has decided to take a lower salary than his eligibility of Rs. 39.36 crore, as per shareholders approval, to reflect his desire to set a personal example for moderation in managerial compensation levels. The salary figure for the fiscal ended 31 March, 2011, is not yet known. Bank of America has informed the US market regulator SEC that it has allotted 1835 Bank of America shares, worth over $24,500 (about Rs. 11 lakh), to Ambani as a portion of the annual retainer payment to its directors. Bank of America appointed Ambani as an independent director on its board on 16 March. Ambani is the first non-American to join the board of one of the worlds largest financial institutions, which currently commands a market value of over $ 136 billion and had a revenue of more than $111 billion last year. The bank has said that it would benefit from Ambanis expertise in risk management and strategic planning across a diverse range of businesses, including energy, information and communications technology, and retail networks. The Bank has sought shareholders approval for Ambanis appointment in its upcoming AGM on 11 May. As per the document sent to the shareholders for this AGM, the bank pays a total of $2,40,000 (over Rs. 1 crore) to its non-management directors in cash and stocks. This includes a cash award of $80,000 and restricted stock award of USD 160,000. The stocks are allotted under the Bank of America Corporation Directors Stock Plan, which restricts sale of these shares within one year of allotment. The directors joining mid-year get the pro-rated amount of this annual compensation package for the first year.