As per the One97 Communications Ltd (parent firm of Paytm), 99.67 percent of shareholders voted for the reappointment of Vijay Shekhar Sharma as Paytm’s chief executive officer and managing director in the annual general meeting of the company.
Voters Backing to Sharma’s Reappointment & Remuneration
Held on August 19, as many as 7 resolutions were passed at the 22nd AGM of Paytm. These include:
- Vijay Shekhar Sharma’s renumeration for the next three fiscal years
- Reappointment of Madhur Deora as the company’s chief financial officer
- Retention of Ravi Adsumalli as a director
In a statement, company said that such a voting reflects the kind of confidence that investors have in the leadership. As per the statement, it is also a reflection of the confidence that investors have regarding the growth and profitability target of Paytm.
As per Paytm’s regulatory filing, the reappointment vote got 99.67 percent voters backing whereas the renumeration got 94.48 percent backing.
However, prior to the AGM, three proxy advisory firms had advised against Sharma’s reappointment and remuneration. These were: Institutional Investor Advisory Services (IiAS), Stakeholders Empowerment Services (SES) and InGovern Research Services.
When we take a deep dive into the recommendation report of IiAS, it said that the company should consider professionalising the management. It said “Vijay Shekhar Sharma has made several commitments in the past to make the company profitable, however, these have not played out. We believe the board must consider professionalising the management.”
After being listed on the bourses in November last year, it was the first AGM since the listing.
Paytm’s Abysmal Performance
The company’s Rs 18,300 crore public offer was the biggest in India’s corporate history at the time.
When we look at the picture one year down the line, we understand that the lustre is gone as amid the global meltdown in tech valuations, the stock is down around 64 percent from the initial public offer pricing of Rs 2,150 apiece.
In the month of march, RBI barred the Paytm’s payments bank arm to onboard new customers over uncertainty regarding the customer data management.
As of August 19, Paytm shares closed at around Rs 772 apiece at the BSE and the NSE, marking a drop of 14 percent as compared to the previous close.
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