Paytm AGM: Shareholders Approve Vijay Shekhar Sharma’s Reappointment As MD And CEO
The resolution was passed with 99.67% of votes in favour.
A proposal to reappoint Vijay Shekhar Sharma as managing director and chief executive officer of the digital payments platform Paytm has passed shareholders’ vote.
The resolution was passed with 99.67% of votes in favour at the annual general meeting held on Friday, the parent One 97 Communications Ltd. said in an exchange filing on Sunday. A proposal for revised payment of Sharma’s remuneration was also passed with 94.48% of votes in favour.
On Aug. 11, the Institutional Investors Advisory Services had flagged Paytm’s proposals to reappoint Sharma at the helm. In its recommendation report, the proxy advisor had asked shareholders to vote against proposals to reappoint Sharma as MD and CEO for five more years, citing the decline in the company’s stock price and wealth destruction for shareholders; as well as fix his remuneration.
Paytm has lost more than 60% of its value since its high-profile initial public offering in November as it struggled to convince investors of its earnings potential.
Sharma, at the 22nd AGM, said the company does not influence the price at which its stock trades, according to a PTI report. “There are several factors. The company’s profitability plays a very important factor in it. The company’s growth plays an important role in it but these two are not the only factors for share price,” he was quoted as saying in the PTI report. “Macro, micro, international investors and several other sentiments play a role in share prices.”
The company, according to him, is making efforts to make the firm profitable.