Mukesh Ambani got Rs 1.4 cr as compensation from BofA in 2011

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US-based Bank of America paid about Rs 1.4 crore as director compensation during 2011 to Indian industrialist Mukesh Ambani who had joined the board of the global banking giant last year.

The director fees and other payments made by Bank of America (BofA) during 2011 have been disclosed by it in a notice sent to its shareholders for their Annual Meeting scheduled for May 9, 2012.

At the meeting, the shareholders would vote for election of 12 directors, including Mukesh Ambani, as also for approval of the executive compensation among other matters.

Ambani, Chairman and Managing Director of India's most valued company Reliance Industries Limited (RIL), has been an independent director at BofA since March, 2011.

Giving details of the compensation paid to various directors, BofA said in the notice to shareholders that Ambani was paid fees worth USD 92,282 in cash and USD 184,534 through stock awards, leading to a total of USD 276,816 (about Rs 1.4 crore)for the year 2011.

Ambani was the fourth highest paid director during 2011, after Charles Gifford (USD 517,190), Charles Holiday (USD 500,000) and Donald Powell (USD 315,000).

BofA further said that the "the grant, vesting and settlement of the regular annual restricted stock award granted to Ambani in May 2011 are conditioned on the receipt of any necessary Indian regulatory approval."

Ambani was given shares worth USD 160,000 (nearly Rs 72 lakh) on May 11, 2011, which had come within weeks of another tranche of shares allotted to him as part of his fees.

Ambani holds a total of 14,896 shares of the bank. While his remuneration as RIL chief in the last fiscal is yet to be disclosed, Ambani had foregone any salary hike for three consecutive years prior to that and had capped his annual pay at Rs 15 crore.

Explaining its business relationships, BofA said the company or its subsidiaries provided banking products or services, including capital markets, credit, deposit, investment banking, leasing, trade and treasury services, in the ordinary course, to Ambani-led Reliance group,

However, the fees received by BofA from Reliance Industries Limited was "below the thresholds in the NYSE listing standards and our Categorical Standards, and were less than two per cent of our consolidated gross annual revenues."

It further disclosed that "the company or its subsidiaries provided banking products or services, including capital markets, credit and treasury services, in the ordinary course to, and purchased products or services, including marketing-webcast services and utilities, in the ordinary course from, Reliance ADA Group or its subsidiaries where (Mukesh) Ambani’s immediate family member is an executive officer."

"The fees paid by or to Reliance ADA Group or its subsidiaries fell below the thresholds in the NYSE listing standards and our Categorical Standards, and were less than 2 per cent of our consolidated gross annual revenues," it added.