Paytm parent One97 Communications’ shareholders have been advised by the Institutional Investor Advisory Services India (IIAS) against the reappointment of Vijay Shekhar Sharma as its chief executive, and his remuneration. The proxy advisory firm, ahead of Paytm’s annual general meeting on August 19, has said that Sharma had, in the past, made commitments that did not play out well.
IiAS’ report, which comes ahead of Paytm’s AGM taking place on August 19th, informed, “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.”
In its report, IiAS mentioned that Paytm’s shares have tanked 63.6% from the issue price of INR 2,150 apiece to INR 825.11 as of August 11th thus, wiping out investors’ wealth.
The report stated, “We take comfort in the board’s assertion that the company has an effective mechanism for succession planning for the orderly succession of directors and senior management personnel. We raise concerns that Sharma is not liable to retire by rotation, and that he will get board permanency if he continues in a non-executive capacity following the end of his term as managing director.”