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Shareholders of Paytm's parent company, One97 Communications, have voted to reappoint Vijay Shekhar Sharma as the company's managing director. According to a report, out of the total votes, 99.67% favored the resolution to reappoint Sharma, and the Institutional investors supported the resolution with 94.69% votes.
Stakeholders Empowerment Services (SES), Institutional Investor Advisory Services India (IiAS), and InGovern Research Services who were the proxy advisory firms asked the shareholders to vote against Sharma’s reappointment.
“His (Sharma) remuneration is fixed for the next three years without any annual increment, unlike the policy/practice applicable to all other employees of the company,” Paytm said in a statement.
In a letter to shareholders dated April 6, 2022, Sharma said “My ESOPs will vest only when the market cap of Paytm crosses the IPO level on a sustained basis.”
The company held its annual general meeting (AGM) last Friday i.e 19th August 2022
One97 Communications (OCL) had sought shareholders’ approvals to reappoint Sharma as the managing director for a period of 5 years from December 19, 2022, and salary payment as ‘minimum remuneration’ for three years from the Financial year 2023.
"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 professionalizing the management," IIAS had said in its note to shareholders.
The shares of Paytm closed its trading session at Rs 776 a piece. The share price of the stock has reduced drastically by more than 60% from its listed price.
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