IiAS In its report, “Sharma has made several promises in the past to help the company become profitable, but they are not being fulfilled. We believe that the board should think about bringing the management into a professional setting.”
Based on IiAS projections Sharma could earn an amount of INR 796 crore as compensation for the fiscal year 2023. including 21 million options for stock, at INR 9 each…
At the time of writing the shares of Paytm are traded at an INR 780.90 at the time of writing (12:10 midnight) on BSE
A consultancy business Institutional Investor Advisory Services India Limited (IiAS) has voted against having Vijay Shekhar Sharma as the CEO of Paytm for the next five years.
Additionally, IiAS condemns the remuneration set for the new Paytm CEO. It urges all members of the fintech startup listed to reject the recent decision of the company.
IiAS’ report which is released ahead of Paytm’s annual general meeting, which is scheduled for August 19th, informs, “Vijay Shekhar Sharma has taken a number of commitments previously to help make the company profitable, but these are not being fulfilled. We believe the board needs to look at professionalizing the management.”
The report states, “We take comfort in the assertion of the board that it has a reliable method for planning succession for the smooth succession of directors and top management employees. We are concerned that Sharma isn’t able to retire on a rotation basis, and that he would be eligible for board permanence if he remains as a non-executive director at the conclusion of his tenure as the managing director.”
The report stated that Paytm will seek stakeholder approval at the next AGM to approve the proposed remuneration, which is a minimum remuneration. This will be given to Sharma regardless of the event that the startup experiences losses.
As per IiAS projections Sharma could earn more than INR 796 crore in payment in fiscal year 2023. This includes 21 Mn options on stock with an INR 9 per piece.
The latest news comes from Paytm’s parent company One97 Communications increased the losses of 69 percent in INR 645.4 Cr in the first quarter of June of FY22-23.
In the meantime, the fintech unicorn’s operating revenues soared up 89% year-on-year, to INR 1,680 crore during the comparable quarter.