Vijay Shekhar Sharma has reappoint as Paytm Managing Director and Chief Executive Officer as 99.67% of shareholders vote in favour of him.
One97 Communications Limited (OCL) which owns the brand Paytm, India’s leading digital payments and financial services company and the pioneer of QR and mobile payments, recently held its 22nd Annual General Meeting (AGM) the first as a public list company.
The company’s shareholders have vote with a 99.67% majority in favour of Vijay Shekhar Sharma’s reappointment as the Managing Director for 5 more years, designate as “Managing Director and Chief Executive Officer” of the company.
Official statment said :
“The resounding votes of almost 100 percent 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,”.
Earlier in May 2022, OCL’s Board of Directors approve the reappointment of Vijay Sharma as Managing Director.
And, SEBI, in February 2022, had made it voluntary for India to have a separate Chairperson and Managing Director/Chief Executive Officer.
In most Nifty 50 companies, the Managing Director is appoint on a non-rotational basis.
The resolution for Vijay Sharma’s remuneration receive 94.48% of votes in favour.
Vijay remuneration is fix for the next 3 years without any annual increment, unlike the policy/practice applicable to all other employees of the company.
In his letter to shareholders dated 6th April, 2022, Vijay Sharma inform the public that his employee stock ownership plan (ESOPs) will vest only when the market cap crosses the Initial public offering (IPO) level on a sustain basis.
The ESOPs were already approve by the shareholders in compliance with applicable laws and with all necessary approvals, before the IPO was look at, the company said in a statement.
During the AGM, the shareholders also duly pass the resolutions for reappointment of Ravi Chandra Adusumalli to the Board, the appointment of Madhur Deora as whole-time Director designate as Executive Director, President and Group Chief Financial Officer of the company with his remuneration, and approval of contribution to Charitable and other Funds and the receipt, consideration and adoption of the Audited Standalone and Consolidated Financial Statements of the Company for the financial year end 31st March, 2022.
Madhur Deora’s appointment receive 99.82% votes in favour, while the resolution for his remuneration receive 94.53% votes in favour.
Madhur Deora join the company in 2016 and has play a vital role in getting marquee investors on board and shaping the company’s growth plans.
Paytm spokesperson said :
“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,”.
Under Vijay Shekhar Sharma’s leadership, Paytm has establish itself as the pioneer of QR payments, the market leader in digital payments, and constantly innovating in payments and digital financial services.
In a letter to shareholders dated 6th April, 2022, Vijay Sharma, encourage by the company’s business momentum, the scale of monetization and operating leverage, said Paytm should be operating EBITDA breakeven in the next 6 quarters.
