One97 Communications Limited (OCL), which owns the brand Paytm, has reappointed Vijay Shekhar Sharma as Managing Director and Chief Executive Officer after 99.67% of shareholders voted in favour of him.
One97 Communications Limited (OCL) held its 22nd Annual General Meeting (AGM), the first as a public listed company.
The company’s shareholders have voted with a 99.67% majority in favour of Vijay Shekhar Sharma’s reappointment as the Managing Director for five more years, designated as ‘Managing Director and Chief Executive Officer’ of the company, it said in an official statement.
“The resounding votes of almost 100 per cent in favour of his reappointment reflects investors’ faith in the company’s leadership and also shows that they remain confident about the company’s growth and profitability target,” the statement read.
Additionally, SEBI, in February 2022, had made it voluntary for India Inc to have a separate Chairperson and Managing Director/Chief Executive Officer.
In most Nifty 50 companies, the Managing Director is appointed on a non-rotational basis.
The resolution for Sharma’s remuneration received 94.48% of votes in favour.
His remuneration is fixed for the next three years without any annual increment, unlike the policy/practice applicable to all other employees of the company.
Furthermore, in his letter to shareholders dated April 6, 2022, Sharma informed the public that his employee stock ownership plan (ESOPs) will vest only when the market cap crosses the Initial public offering (IPO) level on a sustained basis.
The ESOPs were already approved by the shareholders in compliance with applicable laws and with all necessary approvals, before the IPO was looked at, the company said in a statement.
During the AGM, the shareholders also duly passed the resolutions for reappointment of Ravi Chandra Adusumalli to the Board, the appointment of Madhur Deora as whole-time Director designated as Executive Director, President and Group Chief Financial Officer of the company along with his remuneration, and approval of contribution to Charitable and other Funds and the receipt, consideration and adoption of the Audited Standalone and Consolidated Financial Statements of the Company for the financial year ended March 31, 2022.
Deora’s appointment received 99.82% votes in favour, while the resolution for his remuneration received 94.53% votes in favour.
Deora had joined the company in 2016 and has played a vital role in getting marquee investors on board and shaping the company’s growth plans.
“We are thankful to our shareholders for their unwavering support and faith in our leadership. We remain committed to building a large, profitable company and creating long-term shareholder value, while driving financial inclusion in the country,” Paytm spokesperson said.
Under Vijay Shekhar Sharma’s leadership, Paytm has established itself as the pioneer of QR payments, the market leader in digital payments, and constantly innovating in payments and digital financial services.
In a letter to shareholders dated April 6, 2022, Sharma, encouraged by the company’s business momentum, the scale of monetization and operating leverage, said Paytm should be operating EBITDA breakeven in the next 6 quarters (i.e. EBITDA before ESOP cost, and by the quarter ending September 2023).
