Paytm has sought shareholders’ approval for a new remuneration framework that will cap annual compensation of each non-executive independent director at INR 48 Lakh, with a fixed component of INR 20 Lakh
Paytm has also sought approval for the appointment of ex-IRS officer Rajeev Agarwal and the reappointment of Elevation Capital’s Ravi Adusumalli to its board
The development comes as Paytm has been looking to cut corners across the board amid rising losses following the Reserve Bank of India’s crackdown on Paytm Payments Bank
Ahead of its annual general meeting (AGM) on September 12, 2024, troubled fintech major Paytm
has proposed salary cuts for its board members.
In its notice for its 24th AGM, Paytm has sought shareholders’ approval for a new remuneration framework that will cap annual compensation of each non-executive independent director at INR 48 Lakh, with a fixed component of INR 20 Lakh.
The variable component will be linked to attendance at the meetings and chairpersonship/ membership positions held in the various committee(s) of the board.
A breakdown of the proposed variable pay components revealed that INR 12 Lakh will be payable to board members in the capacity of the chairperson of the audit committee (AC) while INR 6 Lakh will be paid to the head of the nomination and remuneration committee (NRC) or risk management committee (RMC).
Meanwhile, members of the audit panel will be paid INR 6 Lakh, while a fee of INR 3 Lakh will be payable for the members who are members of the NRC or RMC committees.
The implementation of the plan will be subject to shareholders’ approval and will come into effect from April 1, 2024.
Paytm has also sought shareholders’ approval for appointment of ex-Indian Revenue Services (IRS) officer Rajeev Krishnamuralilal Agarwal and the reappointment of Elevation Capital co-managing partner Ravi Adusumalli to its board.
It is pertinent to mention that Paytm previously set the salaries of its non-executive independent directors Gopalasamudram Srinivasaraghavan Sundararajan and Ashit Ranjit Lilani at INR 2.07 Cr and INR 1.65 Cr, respectively.
The plan to reduce the remuneration comes as Paytm has been looking to cut corners across the board amid the Reserve Bank of India’s crackdown on Paytm Payments Bank earlier this year. As the central bank more or less barred the payments bank from operating in January 2024, the company has undertaken a restructuring exercise to trim expenses and extend runway as losses balloon.
It also laid off hundreds of employees over the last few months as part of a company-wide retrenchment exercise to trim losses.
Paytm’s net loss soared 134% to INR 840.1 Cr in Q1 FY25 from INR 358.4 Cr in the year-ago period. Revenue from operations also tanked 36% YoY to INR 1,502 Cr in the quarter ended June 2024.
The troubled fintech major on Wednesday also said that it has signed definitive agreements to sell its movie and events ticketing business to Zomato for INR 2,048 Cr.
Shares of Paytm ended marginally higher at INR 573.10 on the BSE on Wednesday.
