Paytm CEO gets new pay formula as co profits rise

Paytm's CEO, Vijay Shekhar Sharma, is set to receive a new pay formula as the company's profits rise, according to its 26th Annual General Meeting (AGM) notice. The Nomination and Remuneration Committee (NRC), along with the board, proposed a revision to Sharma's pay in July 2025, even though he voluntarily declined a pay increase.

Sharma voluntarily gave up 2.10 crore ESOPs in 2025 and has not seen an increase in his base compensation for the past four years. He earned a total compensation of Rs 4.33 crore in FY26, which was lower than the Rs 4.5 crore in FY25.

The proposed remuneration structure is at the lower end of the spectrum among Paytm's listed peers, with companies like Nykaa's Falguni Nayar receiving a 28% increase and Meesho's Vidit Aatrey taking around Rs 5.42 crore. Under the new structure, Sharma's remuneration will include a performance-linked variable component, set by the NRC based on predefined financial targets. For FY27, the metric is the percentage achievement of target PAT growth.

The board also suggested revamping the remuneration structure for non-executive and independent directors and revising the ESOP framework. This move comes after Paytm achieved its first full year of profitability in FY26, with profit after tax (PAT) of Rs 552 crore. The company is expected to maintain this trajectory in FY27, with PAT rising 79% year-on-year and 20% sequentially in Q1 FY27.

The revised framework, subject to shareholder approval, will be in effect from April 1, 2026, to December 18, 2027, covering the remaining tenure of Sharma as Managing Director and CEO.