Bank of America gives shares to Mukesh Ambani as fee for being its Director
April 12, 2011‐ Mumbai, Maharashtra, India
The business media is buzzing with a news item that is something rare in the Indian business circles. The news is that Bank of America is giving its shares to Mukesh Ambani as fee for being its Director. Mukesh Ambani is the Chairman of Reliance Industries Ltd., India's largest private sector enterprise. He is the second richest man in Asia.
Ambani, who joined the board as an Independent Director on March 16, 2011, will get 1.1 million rupees ($24,700)-worth of shares from Bank of America Corporation. He may get 10 million rupees in cash and stock as annual director fees. With Mukesh joining its board, BoA is checking and ensuring that any and all legal and regulatory hurdles and compliances are met. Indian regulations prohibit a bank in India to lend to its directors or its companies where directors have a presence.
The bank expects Ambani to help it in areas of 'risk management and strategic planning across a diverse range of businesses, including energy, information and communications technology, and retail networks'.
Besides being a member on the Board of Directors of the Bank, he is also a member of the international advisory board of Council on Foreign Relations.
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