Paytm proposes to cut directors’ remuneration

Fintech firm Paytm has proposed to reduce the remuneration paid to its board of directors. The move appears to be a step towards good corporate governance. Lately, the firm drew a penalty for non-payment of stamp duty, and flak from SEBI for certain transactions with its banking unit.

The firm’s independent directors will take a haircut in their annual remuneration, according to Paytm’s parent One97 Communication disclosure made to the Bombay Stock Exchange (BSE).

The annual remuneration of independent directors at Paytm including Ashit Ranjit Lilani and Gopalasamudram Srinivasaraghavan Sundararajan stood at Rs 1.65 crore and Rs 2.07 crore, respectively.

If the proposal gets approval from the board, the annual compensation of each non-executive independent director will be capped at Rs 48 lakh from April 2024, with a fixed portion of Rs 20 lakh, as per the disclosure.

The variable component will be linked to attendance at the meetings and overall contribution to various roles. The new remuneration slab is based on the benchmarking done by Paytm and reflects the commitment of board members, said disclosure made to the exchange.

Paytm is also seeking re-appointment of Elevation Capital’s founder Ravi Chandra Adusumalli to its board of directors.

Adusumalli has been on the board of the company since it was private. His appointment is also subject to shareholder approval.