Paytm founder may not be eligible for Esops: Proxy firm

Paytm may be circumventing regulation to grant employee stock options to founder and chief executive officer Vijay Shekhar Sharma, according to proxy advisory firm Institutional Investor Advisory Services.

While Sharma isn’t classified as a promoter – Indian parlance for controlling shareholder – he has rights akin to one, including a potential permanent seat on the board, IiAS said in a note Friday. “These provisions and structures give Vijay Shekhar Sharma ‘entrenchment’ similar to that enjoyed by promoter families in the more traditional companies,” IiAS said.