Paytm proposes salary cut for board members; annual compensation capped at ₹48 lakh

One 97 Communications Limited, popularly known as Paytm's board of directors, announced a salary revision for its executive members to ensure good governance ahead of its annual general meeting (AGM) on September 12, 2024, according to the company's statement on Wednesday, August 21.

Paytm capped the non-executive level compensation at ₹48 lakh, with a fixed component of ₹20 lakh, as a part of the revised remuneration structure subject to shareholders' approval, according to the company.

“Paytm’s board of directors has opted for a significant salary revision, highlighting their commitment to the company’s responsible financial discipline and good corporate governance,” said Paytm in the statement.

Paytm's shares closed 0.06 per cent higher at ₹573.10 after Wednesday's trading session, compared to ₹572.75 in the previous market close.

The company also seeks shareholder approval for the appointment of Rajeev Krishnamuralilal Agarwal, a former Indian Revenue Services officer, as a non-executive independent director at Paytm, the company said in the statement.

Paytm also wants to reappoint Ravi Chandra Adusumalli, the founder and co-managing partner of Elevation Capital, to its board of directors. Adusumalli is set to retire by rotation, said the company. Elevation Capital was one of the initial funding members backing Paytm. 

The company also disclosed the previous salaries of the non-executive independent directors of Paytm’s board members, Ashit Ranjit Lilani, at ₹1.65 crore per year, and Gopalasamudram Srinivasaraghavan Sundararajan, at ₹2.07 crore per year.

“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,” according to the company's exchange filing.

The board's decision towards the reduction of the salaries of the independent directors is a commitment towards ensuring the company is financially prudent, while working towards increasing profitability, as per the statement.