NEW DELHI: IPO-bound
Paytm is planning to more than double its employee stock ownership plan (ESOP) pool, showed a letter sent to the fintech startup’s shareholders for an extraordinary general meeting (EGM) to be held on September 2.
Paytm said it plans to increase the existing ESOP pool from 24,094,280 equity options to 61,094,280 equity options at a face value of Rs 1 each, as it will help the Noida-headquartered company reward and recognise employees that have contributed to the growth of the company. TOI has reviewed a copy of the letter.
ESOP, seen as strategy to attract and retain talent, is an employee benefit plan that allows employees to own shares in the company.
While Paytm is seeking approval for the revised employment agreement of its founder, Vijay Shekhar Sharma as MD and CEO, it is also looking to induct into its board Neeraj Arora, former business head at Whatsapp and Ashit Ranjit Lilani, managing partner at Saama Capital as non-executive independent directors. Douglas Feagin, senior VP at Ant Group will be appointed director.
The revised annual remuneration proposals for the independent directors include Rs 1.85 crore each for Mark Schwartz and Pallavi Shardul Shroff and Rs 1.48 crore each for Ashit Ranjit Lilani and Neeraj Arora.
Paytm which aims to raise Rs 16,600 crore from its initial public offering—the biggest such offer in the Indian stock market history—filed the draft prospectus with market regulator SEBI last month, according to which it was last valued at $16 billion.
The digital payments major’s move comes at a time when valuations of tech startups in India are at an all-time high, giving them the opportunity to provide buyback windows to employees that want to cash their stock options.
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