The Board of Directors of financial services firm Paytm said that they have opted for a reduced salary under a 'revised remuneration structure', according to the company's annual report published on August 21. The proposed revision is subject to shareholder approval.
The move comes amidst Paytm's struggle to cope with the impact of the RBI's curbs on its associate firm, Paytm Payments Bank, virtually shutting down the business. The firm saw its losses widen in Q1FY25, with consolidated net loss ballooning two-and half times to Rs 839 crore from Rs 357 crore a year ago.
According to the company’s exchange filing, 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 capitalisation. This decision also reflects the board members’ commitment towards ensuring that the company remains financially prudent, as it works towards its intended path of profitability.
Previously, the annual salaries of Non-Executive Independent Directors of Paytm’s board
members including Ashit Ranjit Lilani was set at Rs 1.65 crore, while that of and Mr.
Gopalasamudram Srinivasaraghavan Sundararajan was set at Rs 2.07 crore.
With the revised remuneration structure, the annual compensation of each Non-Executive
Independent Director will be capped at Rs 48 lakh, with a fixed component of Rs 20 lakh.
In Q1, the fintech firm's revenue from operations declined 36 percent to Rs 1,502 crore in Q1FY25 as against Rs 2,342 crore in the year-ago period. Of Rs 1,502 crore revenue, payments business contributed Rs 900 crore, Rs 280 crore came from financial services while the rest was contributed from marketing services.
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