Paytm’s billionaire founder unscathed in critical test of investor confidence as majority of shareholders vote to keep helm of fintech pioneer in India’s worst-ever market debut Appeared in
99.67% of shareholders voted strongly to retain Vijay Shekhar Sharma as Managing Director and Chief Executive Officer among the items decided at the company’s Annual General Meeting. A proxy advisory firm last week recommended that shareholders replace the founder as managing director and CEO, citing concerns over his ability to reverse the company’s losses.
Sharma received an “overwhelming vote of confidence from shareholders for reappointment” as managing director and CEO, the company said in an exchange and press statement on Sunday. Percentage of up votes.
Indian tech start-up billboard 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. . In an interview last month, Sharma, 44, said Paytm would become the first internet company in India to reach $1 billion in annual revenue, promising a shift from growth to profitability.
Institutional Investor Advisory Services India Ltd. said last week that investors should vote against Sharma’s reappointment and that the board needs to put an expert in the position. Several times before the IPO, Sharma publicly talked about the company becoming profitable, but the company said it didn’t even come to an operational level.
Paytm, listed on the stock exchange as One 97 Communications Ltd., counts Ant Group Co.’s Antfin (Netherlands) Holding BV., SoftBank Group Corp. and Canada Pension Plan Investment Board as its largest shareholders. Of the 12 analysts covering the company, six have a buy rating, three have a hold, and the remaining three advise investors to sell the stock. .
Sharma’s compensation will be fixed for the next three years, with no annual raises, the company said Sunday. The founder has previously said his employee equity incentives will vest after the company’s market value sustainably exceeds his IPO levels.
Shareholders also approved the reappointment of Ravi Adusumalli to the Board, whom the proxy advisor had recommended against, and the appointment of Madhur Deora as a full-time director and Group Chief Financial Officer.
