Vijay Shekhar Sharma has been reappointed as Paytm’s managing director and chief executive officer because about 99.6% of shareholders voted in favour of him,
One97 Communications Limited (OCL), the owner of the Paytm brand and India’s largest provider of digital financial services including mobile and QR payments, recently conducted its 22nd Annual General Meeting (AGM), the organization’s first as a publicly traded business.
Vijay Shekhar Sharma has been reappointed as the managing director of the company for another five years, and has been given the title of “managing director and chief executive officer” by the company’s shareholders, who voted in his favour with a 99.67% majority.
“The resounding votes of almost 100 per cent in favour of his reappointment reflects investors’ faith in the company’s leadership and also shows that they remain confident about the company’s growth and profitability target,” an official statment said.
The OCL Board of Directors earlier in May 2022 gave their approval for Mr. Sharma to be reappointed as Managing Director.
In addition, SEBI made it optional for India Inc. to have a separate Chairperson and Managing Director/Chief Executive Officer in February 2022.
The Managing Director is typically recruited on a non-rotational basis in Nifty 50 businesses.
The motion to approve Mr. Sharma’s compensation received 94.48% of the vote.
In contrast to the policy or practise that applies to all other employees of the organisation, his compensation is set for the following three years without any annual increases.
Additionally, Sharma told the public in a letter to shareholders dated April 6, 2022 that the employee stock ownership plan (ESOP) shares will only vest when the market cap consistently exceeds the IPO level.
Before considering an IPO, the ESOPs were already approved by the shareholders and in accordance with all applicable laws and permissions, the business claimed in a statement.
At the AGM, the shareholders also duly approved the resolutions for the reappointment of Ravi Chandra Adusumalli to the Board, the designation of Madhur Deora as Executive Director, President, and Group Chief Financial Officer of the company, along with his compensation, and the approval of contribution to charitable and other funds. They also received, considered, and adopted the audited standalone and consolidated financial statements of the company.
The resolution approving Mr. Deora’s appointment received 99.82% of the vote, while the resolution approving his compensation received 94.53% of the vote.
Mr. Deora joined the company in 2016 and has been instrumental in designing the company’s growth strategies and recruiting notable investors.
“We are thankful to our shareholders for their unwavering support and faith in our leadership. We remain committed to building a large, profitable company and creating long-term shareholder value, while driving financial inclusion in the country,” Paytm spokesperson said.
Paytm has made a name for itself as the industry leader in digital payments, the inventor of QR payments, and a leader in payments and digital financial services under the direction of Vijay Shekhar Sharma.
Encouraged by the company’s growth progress, the scope of monetization, and operating leverage, Mr. Sharma wrote to shareholders on April 6, 2022, stating that Paytm should operate at EBITDA breakeven in the following six quarters (i.e. EBITDA before ESOP cost, and by the quarter ending September 2023).
