Paytm CEO may face opposition to his salary and his reappointment as advisory proxy firm IiAS is advising funds/shareholders to vote against it in the upcoming shareholder meeting on August 19.
“Since the company’s listing, its stock price has fallen by 63.6% (from the issue price of Rs 2,150), resulting in wealth destruction for shareholders. In FY22, the company reported a cash loss of Rs 1,200 crore and losses in the first quarter of FY23 were high. 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,” IiAS said.
IiAS estimates that Sharma’s remuneration for FY23 is Rs 796.28 crore, which comprises 21 million stock options at an exercise price of Rs 9. This is a “deep discount” to the market price on the date of grant. He was granted 46.5% of the entire stock option pool, which is equal to 3.2% of the outstanding share capital.
If shareholders approve, Sharma is expected to take home Rs 4 crore in remuneration for the financial year, including benefits such as company-leased accommodation.
Paytm’s shares had fallen 63% from the issue price of Rs 2,150 per share, resulting in wealth destruction for shareholders.
Institutional Investor Advisory Services (IIAS) is a proxy advisory firm that provides suggestions to funds on how to vote for corporate actions.