The shareholders of One97 Communications, a brand that operates under Paytm, have approved the re-appointment of Vijay Shekhar Sharma as managing director and chief executive officer of the company.
IiAS, an investors advisory firm, said that Vijay made several commitments in the past to make the company profitable; however, these have not played out.
According to the scrutinizer report, 99.67 per cent of votes were in favour of Sharma’s re-appointment, while only 0.33 per cent voted against the resolution.
Along with this, shareholders also approved the remuneration of Vijay Shekhar Sharma as well as the President & Group Chief Financial Officer Madhur Deora of Paytm, but the level of support was not the same. Around 94.48 per cent of shareholders voted in favour of Sharma, and 5.52 per cent opposed it.
In the case of Deora, 94.53 per cent of shareholders supported the remuneration while 5.47 per cent opposed it.
IiAS was against the remuneration of both Sharma and Deora. It is said that Sharma’s remuneration is higher than the CEOs of other companies like S&P, BSE and Sensex.
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The first annual general meeting was held on 19 August, in which Sharma reiterated his decision not to vest his employee stock options until the company’s share price crossed the IPO price.
On the first anniversary of Paytm becoming a listed company, which was held virtually, Sharma announced that the company would become operationally profitable by September next year.
“Vijay remuneration is fixed for the next three years without any annual increment, unlike the policy/practice applicable to all other company employees”, Paytm said in a statement.
With this, IiAS had also suggested against the appointment of Elevation Capital managing partner Ravi Chandra Adusumalli as director of the OCL board.
