AUGUST 22, 2022
The founder of Paytm was under scrutiny for the first time since having established the firm with many opposing the move to re-appoint him. (Image: Bloomberg)
Paytm boss Vijay Shekhar Sharma has secured the approval of shareholders to continue to act as the Managing Director (MD) and CEO of Paytm (One 97 Communications) while drawing a salary worth Rs 4 crore per annum, despite facing resistance from institutional investors at the Annual General Meeting (AGM). Shareholders have also approved the appointment of Madhur Deora, as Whole-time Director, designated as Executive Director, President and Group Chief Financial Officer of the Company. The AGM had garnered interest after various proxy advisory firms had opposed the re-appointment and remuneration of Vijay Shekhar Sharma.
Vijay Shekar Sharma stands firm
The founder of Paytm was under scrutiny for the first time since having established the firm with many opposing the move to re-appoint him. However, the re-appointment of Vijay Shekar Sharma as the MD and CEO of the company saw 99.67% of the shareholders vote in favour of the resolution. In comparison, only 0.33% opposed the move. Out of the 575,759,523 votes cast, 573,838,574 favoured the resolution while 1,920,949 opposed the move. Most of the votes against Vijay Shekhar Sharma’s re-appointment came from institutional investors.
However, the resolution on Vijay Shekar Sharma’s remuneration saw massive rejection from institutional investors. Out of all the votes cast by institutional investors, 75.6% opposed the salary proposal for the Paytm boss, with only 24.4% agreeing with the proposal. It was, however, the public — non-institutional investors who favoured the salary proposal.
Accordingly, Vijay Shekar Sharma will take home Rs 4 crore per annum now. The 44-year-old’s total remuneration for FY 2021-22 was also Rs 4 crore, which included a salary of Rs 3.714 crore, with perquisites worth Rs 28.7 lakh, Paytm’s annual report showed. “The resolution for Vijay Shekar Sharma’s remuneration received 94.48% votes in favour. His remuneration is fixed for the next three years without any annual increment, unlike the policy/practice applicable to all other employees of the company,” Paytm said in a statement.
Earlier, Vijay Shekar Sharma had informed the public that his ESOPs will vest only when the market cap crosses the IPO level on a sustained basis. The stock has tanked from Rs 2,150 per share IPO price to Rs 771 apiece.
Other resolutions passed
Paytm shareholders have also approved the re-appointment of Ravi Chandra Adusumalli and the appointment of Madhur Deora, as Whole-time Director, designated as Executive Director, President and Group Chief Financial Officer of the Company. Deora will draw a salary of Rs 3.88 crore per annum and has also been granted 55,556 stock options in May, 2022.
Madhur Deora’s appointment received 99.82% votes in favour, while the resolution for his remuneration received 94.53% votes in favour. Unlike the opposition by advisory firms to the re-appointment and remuneration of Vijay Shekhar Sharma, the resolution for Madhur Deora was not opposed.
Paytm has also approved an aggregate amount of Rs 10 Crores per annum, in one or more tranches, for a period of three financial years to be donated for charitable purposes. The funds may be routed to Paytm Foundation for carrying out Corporate Social Responsibility activities.
