Vijay Shekhar Sharma has been reappointed as the Managing Director and Chief Executive Officer of Paytm with 99.6% shareholders voting in favour of him, the company said on Sunday (August 21).
Earlier in May, Sharma’s reappointment as the MD & CEO was also approved by One97 Communications Limited’s (OCL) Board of Directors. OCL owns the brand Paytm.
OCL held its 22nd Annual General Meeting on August 19.
“We are pleased to inform that our shareholders voted with 99.6% majority for Vijay Shekhar Sharma’s reappointment as the Managing Director, designated as ‘Managing Director and Chief Executive Officer’. With this, Vijay will continue to lead and guide us… As the pioneer of mobile and QR payments, we have emerged as a market leader in digital payments with our technology-led innovations in payments and digital financial services under Vijay’s leadership,” Paytm said in a statement.
“The overwhelming support of the shareholders with almost 100% votes in favour of Vijay’s appointment is a reflection of our investors’ faith in his leadership and also shows their confidence in our growth and profitability target,” it added.
The Securities and Exchange Board of India (SEBI), in February, had made it voluntary for India Inc. to have a separate Chairperson and Managing Director/Chief Executive Officer. In most Nifty 50 companies, the Managing Director is appointed on a non-rotational basis.
The company said that Sharma’s remuneration received 94.48% votes in favour of the resolution. Sharma is the founder of Paytm.
“His remuneration is fixed for the next three years without any annual increment, unlike the policy/practice applicable to all other employees of our company,” Paytm said.
In his letter to shareholders dated April 6, Vijay informed the public that his employee stock options (ESOPs) will vest only when the market cap crosses the IPO level on a sustained basis. The ESOPs were already approved by the shareholders in compliance with applicable laws and with all necessary approvals before the IPO was looked at.
At the AGM, shareholders also endorsed resolutions for reappointment of Ravi Chandra Adusumalli to the Board and appointment of Madhur Deora as Whole-time Director designated as Executive Director, President and Group Chief Financial Officer of Paytm along with his remuneration.
The shareholders also approved the company’s contribution to Charitable and other Funds, and the receipt, consideration and adoption of the Audited Standalone and Consolidated Financial Statements for the financial year ended March 31, 2022.
“Encouraged by our business momentum, scale of monetization and operating leverage, we remain committed to our aim of being operating EBITDA breakeven in next 6 quarters (i.e. EBITDA before ESOP cost, and by the quarter ending September 2023). We once again thank all shareholders for their support in our journey,” Paytm said.