New Delhi: Paytm parent One97 Communications has proposed a revision to founder and CEO Vijay Shekhar Sharma’s remuneration, after an independent benchmarking exercise found that his existing compensation was materially below that of comparable executives. The proposed structure introduces a performance-linked variable component, with Sharma’s payout for FY27 set to depend on the company’s achievement against its profit targets.
The proposal comes after Sharma’s base remuneration remained unchanged since August 19, 2022. He had also voluntarily requested that his remuneration be kept unchanged and gave up 2.10 crore employee stock options in 2025.
The proposed revision will now require shareholder approval.
Sharma’s remuneration has remained unchanged for four years
According to Paytm’s latest Annual General Meeting notice, Sharma’s base remuneration has not received an increment since 2022.
He received total remuneration of ₹4.33 crore in FY26, including perquisites, compared with ₹4.5 crore in FY25. The reduction came even as the company’s business and profitability profile changed significantly during the period.
Sharma had voluntarily chosen not to increase his remuneration earlier. In 2025, he also voluntarily gave up 2.10 crore ESOPs, meaning he currently does not hold any employee stock options in Paytm.
The board’s latest proposal therefore represents a shift towards a compensation structure that more closely connects the CEO’s earnings with Paytm’s financial performance.
Independent review finds pay below peer levels
Paytm appointed an independent global human-resources consulting firm in June 2026 to benchmark Sharma’s compensation.
The review examined fixed pay, variable compensation and ESOPs and compared his remuneration with executives at new-age internet companies, financial services and technology companies in the BSE 100 and a broader BSE 100 comparison group.
The exercise concluded that Sharma’s existing remuneration was “materially below” the median across the relevant comparator groups.
This finding prompted Paytm’s Nomination and Remuneration Committee to recommend a revised compensation structure.
New variable component to depend on PAT growth
Under the proposed arrangement, Sharma’s remuneration will include a performance-linked variable component.
For FY27, the key metric will be the percentage achievement of Paytm’s targeted profit after tax (PAT) growth. The Nomination and Remuneration Committee will determine the variable payout based on how the company performs against the predefined financial targets.
The structure effectively ties a portion of the CEO’s compensation to profitability rather than providing an unconditional increase.
No fresh ESOPs have been proposed for Sharma as part of the revision.
Paytm has turned profitable
The proposed pay revision comes at a significant point in Paytm’s financial journey.
The company recorded its first full year of profitability in FY26, reporting a PAT of ₹552 crore.
Paytm has also maintained its profitable trajectory in the opening quarter of FY27.
For Q1 FY27, the company reported a PAT of ₹220 crore, representing a 79% year-on-year increase. Profit also rose 20% sequentially, according to the AGM-related disclosures.
The timing of the remuneration proposal therefore coincides with a period in which Paytm has moved its focus from achieving scale to demonstrating sustainable profitability.
Sharma’s pay remains below some fintech peers
Even with the proposed revision, Sharma’s existing remuneration is relatively modest compared with some executives in India’s new-age technology sector.
For comparison, Groww co-founder and CEO Lalit Keshre received a combined payout of around ₹188 crore in FY25, including a one-time performance-linked incentive. Pine Labs CEO Amrish Rau received approximately ₹9.5 crore in FY25, in addition to stock options valued at around ₹243 crore that were allotted shortly before the company’s IPO.
Other listed-company founders and CEOs have also received substantially higher compensation packages.
This comparison was one factor considered during Paytm’s independent benchmarking exercise.
No fresh ESOPs for Vijay Shekhar Sharma
A notable feature of the proposed revision is the absence of new employee stock options.
Sharma had already voluntarily given up 2.10 crore ESOPs in 2025 and currently holds no ESOPs in Paytm.
Instead, the proposed structure relies on cash remuneration and a variable component linked to financial performance.
This could provide a clearer connection between the CEO’s compensation and Paytm’s ability to deliver its profitability targets.
Paytm also proposes changes for directors
The remuneration review is not limited to Sharma.
The Paytm board has also proposed changes to the compensation framework for non-executive and independent directors, following a separate benchmarking exercise.
The company is also proposing changes to its ESOP framework, including linking future vesting more closely to employee performance.
The broader changes indicate that Paytm is reviewing its compensation structure across different levels of leadership and employees.
Proposal comes after a major shift in Paytm’s strategy
Paytm’s approach to remuneration is being reshaped as the company moves into a more profitability-focused phase.
The fintech firm faced significant regulatory challenges in recent years, but has subsequently worked to strengthen its payments and financial-services operations while improving its bottom line.
Its return to full-year profitability in FY26 marked an important milestone.
The latest compensation proposal reflects the board’s attempt to align executive incentives with that improved financial performance.
Shareholders will have the final say
The proposed remuneration revision is not yet final.
The company’s shareholders will need to approve the new structure before it can take effect.
According to the AGM notice, the revised framework, if approved, will apply from April 1, 2026, to December 18, 2027, covering the remaining period of Sharma’s current tenure as Managing Director and CEO.
The approval process will therefore determine whether the proposed performance-linked structure becomes part of Sharma’s compensation package.
What the proposal means for Paytm
The proposed change represents more than simply a salary increase for the company’s founder.
By tying variable remuneration to PAT growth, Paytm is effectively linking a portion of its CEO’s compensation to the company’s ability to deliver on profitability goals.
That approach could also reassure investors that executive compensation is being connected to measurable financial outcomes.
At the same time, the benchmarking exercise indicates that Paytm’s board believes Sharma’s existing fixed remuneration has fallen below market levels after remaining unchanged for several years.
Focus shifts from ESOPs to performance
The decision not to grant fresh ESOPs is another important aspect of the proposal.
Sharma’s earlier decision to voluntarily forgo his ESOPs had reduced the equity-linked component of his compensation. The new structure instead emphasises performance-linked remuneration.
For Paytm, this could offer greater flexibility because the variable component can be adjusted according to the company’s actual performance against targets.
For shareholders, the structure provides a clearer connection between executive pay and the company’s financial results.
Conclusion
Paytm’s parent company One97 Communications has proposed revising Vijay Shekhar Sharma’s remuneration after an independent benchmarking exercise found that his existing compensation was materially below comparable executives. Sharma’s base remuneration had remained unchanged since 2022, and he received ₹4.33 crore in total remuneration in FY26.
The proposed structure introduces a performance-linked variable component, with FY27 payouts tied to the achievement of targeted PAT growth. No fresh ESOPs have been proposed for Sharma.
The proposal comes after Paytm reported its first full-year profit of ₹552 crore in FY26 and followed it with ₹220 crore PAT in Q1 FY27, up 79% year-on-year.
If approved by shareholders, the revised structure would mark a significant change in how Paytm compensates its founder-CEO, shifting the emphasis towards market benchmarking and measurable profitability while maintaining a strong link between executive pay and company performance.