The resolution to reappoint Vijay Shekhar Sharma as Paytm's chief executive officer and managing director was backed by 99.67 percent of shareholders who voted at the company's annual general meeting, said One97 Communications Ltd, the fintech's parent firm, on August 21.
A total of seven resolutions were passed at the 22nd AGM of Paytm, held on August 19. These included Sharma's remuneration for next three fiscal years, reappointment of Madhur Deora as the company's chief financial officer and retaining Ravi Adsumalli as a director.
The company, in a statement, said the resounding vote in favour of Sharma's reappointment "reflects investors’ faith" in the leadership. The vote also shows that the investors are confident about Paytm's "growth and profitability target", it added.
While 99.67 percent voters backed Sharma's reappointment as MD & CEO, those voting in favour of his remuneration was stated as 94.48 percent in Paytm's regulatory filing.
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Ahead of the AGM, three proxy advisory firms - Institutional Investor Advisory Services (IiAS), Stakeholders Empowerment Services (SES) and InGovern Research Services - had advised against Sharma's reappointment and remuneration.
In its recommendation report, IiAS had said: “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.”
The AGM, notably, was the first since the fintech unicorn listed on the bourses in November last year. The company's Rs 18,300 crore public offer was the biggest in India’s corporate history at the time.
A year down the line, however, experts say that the sheen has worn off from Paytm’s top-tier valuation. Its stock is down around 64 percent from the initial public offer pricing of Rs 2,150 apiece amid a global meltdown in tech valuations.
In March, Paytm's payments bank arm was barred from taking on new customers by the Reserve Bank of India (RBI) on concerns about how customer data was being managed.
On August 19, Paytm shares closed at around Rs 772 apiece at the BSE and the NSE, marking a drop of 14 percent as compared to the previous close.
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