Paytm CEO Vijay Shekhar Sharma surrenders 2.1 crore ESOPs worth Rs 1800 crore after...

Vijay Shekhar Sharma, One97 Communications' MD and CEO, has voluntarily surrendered 2.1 crore shares worth about Rs 1,800 crore, as per a regulatory filing and share closing price of the company. The shares were granted to Sharma as part of ESOP (employee stock ownership plan) at the time of the listing of One97 Communications, which owns Paytm brand. It will now return to the ESOP pool under One 97 Employees' Stock Option Scheme, 2019. The decision comes months after SEBI issued a show-cause notice to Paytm over the ESOP units granted to Sharma, before its initial public offering (IPO). Now, Paytm will incur a one-time, non-cash acceleration of ESOP expenses amounting to Rs 492 crore in the fourth quarter of FY25.

"Vijay Shekhar Sharma, Chairman, Managing Director and Chief Executive Officer of the Company vide letter dated April 16, 2025 has informed the company that he has voluntarily forgone all 2,10,00,000 (Two Crore Ten Lakhs) ESOPs granted to him under One 97 Employees Stock Option Scheme, 2019, with immediate effect," the filing said. Based on the Paytm share closing price of Rs 864.5 apiece, the ESOPs are valued at Rs 1,815.45 crore. "This will result in a one-time, non-cash, acceleration of ESOP expense of Rs 492 crores in the fourth quarter of financial year 2025, and an equivalent lowering of ESOP expenses in future years," the filing said. The ESOP expenses are notional value recorded in books as per accounting rules.

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(With inputs from PTI)