Paytm Proposes Cuts For Non-Executive Independent Directors' Salaries
The new remuneration structure is based on the benchmarking done by the company.
Paytm parent firm One 97 Communications Ltd. proposed on Wednesday significant cuts in the annual salaries of non-executive independent directors Ashit Ranjit Lilani and Gopalasamudram Sundararajan.
Lilani's annual salary stood at Rs 1.65 crore, while Sundararajan's was Rs 2.07 crore. Under the new remuneration framework, which is set to take effect retrospectively from April 1, 2024, their salaries will be capped at Rs 48 lakh annually, with a fixed component of Rs 20 lakh. The proposed changes are subject to shareholder approval, according to its annual report.
Additionally, the fintech company is also seeking shareholder approval for the appointment of Rajeev Krishnamuralilal Agarwal, a former officer of the Indian Revenue Services, to its board.
Paytm is also looking to secure approval for the reappointment of Ravi Chandra Adusumalli, founder and co-managing partner of Elevation Capital, to its board.
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 businesses with similar market capitalisation," the company said in its annual report.
The new structure has been in place for years where the company has "no profits or its profits are inadequate." The variable component will be linked to attendance at the meetings, chairpersonship or membership positions held in the various committees of Paytm's board.
