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Paytm CEO Vijay Shekhar Sharma’s reappointment, pay opposed by IIAS

Sharma is likely to draw a remuneration of over Rs 796 crore in FY23, including 21 million stock options at Rs 9 exercise price, as per the firm’s estimates. It said the “company is seeking shareholder approval for the proposed remuneration as minimum remuneration – which will be paid to him even if the company continues to report losses”.

ET Now Digital

Updated Aug 12, 2022, 08:33 IST

New Delhi: A week ahead of One97 Communications AGM, advisory firm Institutional Investor Advisory Services India Limited (IIAS) has opposed the proposal to reappoint Vijay Shekhar Sharma as the Chief Executive Officer (CEO) of Paytm for another five years.

“Vijay Shekhar Sharma has made several commitments in the past to make the company profitable, however, these have not played out. We believe the board must consider professionalising the management,” the firm said in its report. IIAS is a proxy advisory firm that provides suggestions to funds on how to vote for corporate actions.

IIAS added, “We raise concerns that he (Sharma) is not liable to retire by rotation, and that he will get board permanency if he continues in a non-executive capacity following the end of his term as managing director.”

Sharma's remuneration

Apart from this, the firm has also advised the financial services company’s shareholders to not support the remuneration decided for the position -- an amount higher than any of the Sensex 30 executives.

“Sharma was granted 46.5 percent of the entire stock option pool, which is equal to 3.2 percent of the outstanding share capital. There is no disclosure regarding the vesting conditions relating to the stock option grants and thus, no alignment with the interest of shareholders,” the advisory firm added.

The advisory firm is also against the reappointment of Ravi Chandra Adusumalli as Paytm director.

Paytm’s parent company - One97 Communications – will hold its Annual General Meeting (AGM) on Friday, August 19. During the meet, shareholders will also cast their vote on the adoption of financial statements, appointment of Madhur Deora as whole-time director designated as executive director, president & group chief financial officer for five years and on his remuneration.

There is also a resolution to approve contributions to charitable trusts and other funds of up to Rs 10 crore per annum for three years.

The payments giant, whose IPO was the largest after Life Insurance Corporation, has witnessed a massive share price decline as it has 63.6 percent from their issue price of Rs 2,150 since the listing to Rs 825.50 on August 11.

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