One 97 Communications Limited, the parent company of Paytm, announced a salary revision for its executive members, highlighting its commitment to the company’s responsible financial discipline and good corporate governance. This was announced by the company ahead of its 24th Annual General Meeting (AGM) scheduled to be held on September 12, 2024. The new proposed remuneration framework will be subject to shareholder approval.
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 Gopalasamudram Srinivasaraghavan Sundararajan was set at Rs 2.07 crore.
With the revised remuneration structure, Paytm capped the annual compensation of each Non-Executive Independent Director at Rs 48 lakh, with a fixed component of Rs 20 lakh. The variable component, it added, will be linked to attendance at the meetings and Chairpersonship/ Membership positions held in the various committee(s) of the Board, to ensure good governance. The revised remuneration structure will be in effect from April 1, 2024.
In an exchange filing, Paytm said, “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.” The decision also reflects the board members’ commitment towards ensuring that the company remains financially prudent, as it works towards its intended path of profitability.
Paytm is also seeking shareholder approval on appointment of former Indian Revenue Services officer, Rajeev Krishnamuralilal Agarwal to its Board. The company is also seeking shareholder approval on reappointment of Ravi Chandra Adusumalli, Founder and Co-Managing Partner of Elevation Capital to its board of directors, who is set to retire by rotation. Elevation Capital was one of the initial backers of Paytm.