Paytm plunges 5% as IIAS asks shareholders to vote against CEO reappointment
Shares of One 97 Communications fell more than 5% on Friday after Institutional Investor Advisory Services India (IIAS) suggested to shareholders of Paytm’s parent company to vote against Vijay Shekhar Sharma’s reappointment as its chief executive and his salary.
Vijay Shekhar Sharma, according to IIAS, has previously made several promises to turn the business profitable, but these have not materialized.
The IIAS stated, “the board must consider professionalizing the management” before Paytm’s annual public meeting on August 19.
The stock lost 5.50 percent on Friday, reaching a low of Rs 780.05.
“We find solace in the board’s claim that the organization has a strong system in place for succession planning for the smooth transition of senior management and directors.
We express our worry that Mr. Sharma will not be eligible for retirement by rotation and that, if he remains in a non-executive position after his tenure as managing director has ended, he will get bored permanently, according to IIAS.
According to the recommendation report, Sharma’s compensation was reportedly higher than that of the CEOs of all S&P BSE Sensex companies, the majority of which were profitable.