Paytm’s Board of Directors have opted for a reduced salary under a ‘revised remuneration structure’ as per the company’s annual report published on August 21 as per media reports.
This decision comes ahead of the fintech firm’s annual general meeting (AGM) on September 12, 2024. This proposed revision of the salaries of board members is subject to the shareholder's approval.
It will reportedly see the fintech firm cap the annual compensation of each non-executive independent director at Rs 48 lakh, with a fixed component of Rs 20 lakh. It is relevant to note that it had already set the salaries of its non-executive independent directors Gopalasamudram Srinivasaraghavan and Ashit Ranjit Lilani at Rs 2.07 crore and Rs 1.65 respectively
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As per Inc42, Paytm is also looking to appoint ex-Indian Revenue Services (IRS) officer Rajeev Krishnamuralilal Agarwal and reappointment of Elevation Capital co-managing partner Ravi Adusumalli to its board. They have sought the shareholder’s approval for it.
The restructuring of the salaries at the fintech firm comes after Paytm’s banking arm, Paytm Payments Bank Limited (PPBL), was under crackdown from RBI earlier this year for its failure to comply with the central bank's regulations. RBI has more or less prevented the fintech from operating since January 2024 and it has led to immense losses for the company. The salary restructuring is part of its move to trim its expenses and extend the company's runway.
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The company, in recent months, laid off hundreds of employees as part of its retrenchment exercise to compensate for the losses.
Paytm’s losses stood at Rs 840.1 crore in Q1 FY25 from Rs 358.4 crore in the same year-ago period. It is a 134% increase in loss. Its revenue from operations stood at Rs 1,502 crore in the quarter that ended in June 2024.
Recently, the fintech struck a deal with Zomato to buy to sell its movie and events ticketing business for Rs 2,048 crore
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