Paytm plunges 5% as IIAS asks shareholders to vote against CEO reappointment

NEW DELHI: Shares of One 97 Communications plunged over 5 per cent in Friday’s trade after Institutional Investor Advisory Services India (IIAS) advised shareholders of parent to vote against the reappointment of Vijay Shekhar Sharma as its chief executive as well as against his remuneration.

IIAS said Vijay Shekhar Sharma has made several commitments in the past to make the company profitable, but these have not played out.

Ahead of Paytm’s annual general meeting on August 19, IIAS said “the board must consider professionalising the management,”

On Friday, the scrip fell to a low of Rs 780.05, down 5.50 per cent.

“We take comfort in the board’s assertion that the company has an effective mechanism for succession planning for the orderly succession of directors and senior management personnel. We raise concerns that he (Sharma) is not liable to retire by rotation, and that he will get board permanency if he continues in a non-executive capacity following the end of his term as managing director,” IIAS said.

The recommendation report also said Sharma’s remuneration was overall higher than the remuneration levels of the CEOs of all S&P BSE Sensex companies, most of which were profitable.

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