Paytm's Strategic Salary Revision: A Move Towards Financial Prudence and Good Governance

Ahead of its Annual General Meeting, Paytm's board proposes a significant salary revision for Non-Executive Independent Directors to ensure financial discipline and good governance. The move awaits shareholder approval and highlights the company's commitment to profitability and high standards of corporate governance.

In anticipation of its Annual General Meeting scheduled for September 12, Paytm's board of directors has announced a notable revision in the salary structure, underlining their dedication to responsible financial management and exemplary corporate governance. The proposed changes will be put to a vote for shareholder approval.

Previously, Non-Executive Independent Directors on Paytm's board, such as Ashit Ranjit Lilani and Gopalasamudram Srinivasaraghavan Sundararajan, earned annual salaries of Rs 1.65 crore and Rs 2.07 crore, respectively. Under the new remuneration framework, their annual compensation will be capped at Rs 48 lakh, with Rs 20 lakh as a fixed component, according to the company's annual report for 2023-24 released on Wednesday.

The variable portion of their salaries will depend on meeting attendance and their roles within various board committees to ensure good governance. Subject to shareholder approval, the revised remuneration will take effect from April 1, 2024.

According to the company's recent exchange filing, the new salary structure was developed through benchmarking against good governance practices and peer companies in similar sectors. This initiative also aligns with the board's objective of maintaining financial prudence and steering towards profitability.

Paytm is also seeking shareholder approval for the appointment of Rajeev Krishnamuralilal Agarwal, a former Indian Revenue Services officer, to its board. The meeting will also consider the reappointment of Ravi Chandra Adusumalli, founder and co-managing partner of Elevation Capital, to the board. Elevation Capital has been one of Paytm's early investors.

These proposed board changes emphasize Paytm's ongoing commitment to high standards of corporate governance. Paytm's parent company, One 97 Communications Limited, will hold its AGM on September 12, 2024, at 09:00 a.m. via Video Conferencing.

As outlined in a stock exchange filing on Wednesday, the AGM agenda includes discussions on adopting the company's Audited Standalone and Consolidated Financial Statements for the fiscal year that ended in March 2024, along with reports from the Board of Directors and Auditors, among other business matters.

(With inputs from agencies.)