Vijay Shekhar Sharma has been reappointed as Paytm Managing Director and CEO after 99.67 percent of the shareholders voted in his favour.
One97 Communications Limited (OCL) which owns the Paytm brand, India’s leading digital payments and financial services company and a pioneer in QR and mobile payments, recently held its first ever 22nd Annual General Meeting (AGM) as a public listed company.
The company’s shareholders have voted with a 99.67 per cent majority in favor of reappointing Vijay Shekhar Sharma, who was appointed as the “Managing Director and Chief Executive Officer” of the company, as the Managing Director for another five years.
“The almost 100 per cent overwhelming vote in favor of his reappointment reflects investors’ confidence in the company’s leadership and their confidence in the company’s growth and profitability targets,” an official statement said.
Earlier in May 2022, the Board of Directors of OCL had approved the reappointment of Sharma as Managing Director.
Additionally, SEBI had opted to have a separate Chairman and Managing Director/CEO for India in February 2022.
In most Nifty 50 companies, the Managing Director is appointed on a non-rotational basis.
94.48 percent of the votes were in favor of Sharma’s remuneration resolution.
Unlike the policy/practice applicable to all other employees of the company, their remuneration is fixed for the next three years without any annual increment.
Moreover, in a letter to shareholders dated April 6, 2022, Sharma informed the public that his Employee Stock Ownership Plans (ESOPs) will only happen when the market cap crosses the Initial Public Offering (IPO) level on a sustained basis.
The company said in a statement that before the IPO was contemplated, the ESOPs were already approved by the shareholders in compliance with applicable laws and with all necessary approvals.
During the AGM, the shareholders also passed resolutions for re-appointment of Ravichandra Adsumalli to the Board, appointment of Madhur Deora as Executive Director, Chairman of the Company and Group Chief Financial Officer as Whole Time Director with Remuneration. and approval of contributions to charitable and other funds and receipt, consideration and adoption of the audited standalone and consolidated financial statements of the Company for the financial year ended March 31, 2022.
99.82 percent of votes were in favor of Deora’s appointment, while 94.53 percent of votes were in favor of his remuneration resolution.
Deora joined the company in 2016 and was instrumental in bringing marquee investors on board and shaping the company’s growth plans.
“We are grateful to our shareholders for their unwavering support and faith in our leadership. We are committed to building a large, profitable company and creating long-term shareholder value, while increasing financial inclusion in the country,” a Paytm spokesperson said.
Under the leadership of Vijay Shekhar Sharma, Paytm has established itself as the pioneer of QR payments, the market leader in digital payments and a constant innovator in payments and digital financial services.
In a letter to shareholders dated April 6, 2022, Sharma, encouraged by the company’s business momentum, earnings margins and operating leverage, said Paytm should run to breakeven (ie EBITDA before ESOP expenses) in the next 6 quarters. quarter ending September 2023).
