Paytm's parent company, One 97 Communications Limited, has announced a wage modification for its executive members, underscoring the business's commitment to prudent financial discipline and excellent corporate governance. The announcement was made ahead of the company's 24th Annual General Meeting (AGM), which is set on September 12, 2024. The new suggested pay scheme will require shareholder approval.
Previously, the yearly remuneration of Non-Executive Independent Directors of Paytm's board members, including Ashit Ranjit Lilani, were set at Rs 1.65 crore, while Gopalasamudram Srinivasaraghavan Sundararajan's was set at Rs 2.07 crore.
Including the amended remuneration structure, Paytm capped each Non-Executive Independent Director's annual salary at Rs 48 lakh, including a fixed component of Rs 20 lakh. To promote effective governance, the variable component will be tied to attendance at meetings as well as Chairpersonship/Membership roles held in the Board's several committees. The redesigned remuneration system will take effect on April 1, 2024.
In a statement with the exchange, Paytm stated: "The new remuneration structure is based on the benchmarking done by the company, keeping in mind good governance practices and companies in similar sectors or types of business with similar market capitalization." The decision also underscores the board members' commitment to ensuring that the firm stays financially cautious as it pursues its projected route to profitability.
Paytm is also seeking shareholder approval for the nomination of Rajeev Krishnamuralilal Agarwal, a former Indian Revenue Services official, to its board. The business is also seeking shareholder approval for the reappointment of Ravi Chandra Adusumalli, Elevation Capital's Founder and Co-Managing Partner, to its board of directors, who is scheduled to retire by rotation. Elevation Capital was an early supporter of Paytm.
