After Institutional Investor Advisory Services India (IiAS), 2 more proxy advisory firms have advised shareholders to vote against the resolutions of One97 Communications, the parent company Paytm, including reappointment of Vijay Shekhar Sharma as MD.
The latest to join is proxy advisory firm Stakeholders Empowerment Services (SES), which, among others, has red-flagged the company’s resolution to approve his appointment and remuneration. SES cited “dual position of CMD and excessive remuneration” as reasons to disagree with the two resolutions. In its AGM notice, One 97 Communications had sought shareholders’ approvals to reappoint Sharma as managing director (designated as managing director and CEO) for five years from December 19, 2022 and salary payment as “minimum remuneration” for three years from FY23.
Paytm’s stock fell 4.82 per cent on Friday. InGovern is also opposing the reappointment of Sharma. “The main issue is that Sharma is not liable to retire by rotation as director…,” Shriram Subramanian, founder and MD, InGovern Research Services, said. FE