According to the investigative report filed by the firm on Sunday, the shareholders of One97 Communications, which operates under the Paytm brand, have approved the re-appointment of Vijay Shekhar Sharma as Managing Director and Chief Executive Officer of the company. Investor advisory firm IIAS had recommended against Sharma’s reappointment and several other proposals that were part of the agenda of the 22nd Annual General Meeting held on Friday.
IIAS had said that Sharma had made several promises in the past to make the company profitable, but these were not fulfilled. According to the Scrutinizer report, 99.67 per cent votes were in favor of Sharma’s reappointment while only 0.33 per cent voted against the proposal.
While shareholders approved the remuneration of Sharma as well as Paytm chairman and group chief financial officer Madhur Deora, the support was not at the level seen for his reappointment. About 94.48 per cent shareholders voted in favor of Sharma’s remuneration and 5.52 per cent opposed it.
Similar voting was seen in the case of the proposal to approve Deora’s remuneration. 94.53 per cent shareholders supported Deora’s remuneration while 5.47 per cent opposed it. The Institutional Investor Advisory Service (IIAS) had recommended against remuneration to both Sharma and Deora. It added that Sharma’s remuneration is higher than that of CEOs of all S&P, BSE, Sensex companies and most of these companies are profitable.
“His (Sharma) remuneration has been fixed for the next three years without any annual increment, which is contrary to the policy/practice applicable to all other employees of the company,” Paytm said in a statement. Sharma, in his letter to shareholders dated April 6, 2022, had informed the public that his ESOPs would vest only when the market cap exceeds the IPO level on an ongoing basis.
The proxy advisory firm had opposed Deora’s remuneration as well as calling it higher and that he would be paid even if the company continued to report losses. Institutional Investor Advisory Services provides voting recommendations on the AGM agenda to institutional investors. Institutional investors hold 6.6 per cent stake in Paytm.
IIAS had also suggested against the appointment of Elevation Capital’s managing partner Ravi Chandra Adusumalli as director on the OCL board as he has attended only 47 per cent board meetings in FY22 and contributed up to Rs 10 crore in charitable donations. have contributed. The company is running in loss.
According to the report, both resolutions were voted at the AGM with 96.9 per cent voting in favor of Adusumalli’s appointment and 96.84 per cent voting for charitable donations.