In a major decision that reflects strong leadership and long-term vision, Vijay Shekhar Sharma, Managing Director and CEO of One97 Communications—the parent company of Paytm—has voluntarily given up 2.1 crore ESOPs (Employee Stock Ownership Plans). The estimated value of these surrendered ESOPs stands at a whopping Rs 1,800 crore.
Paytm CEO Surrenders ESOPs
The development was confirmed through a regulatory filing, where the company shared that Sharma made his decision in a formal letter dated April 16, 2025. The ESOPs in question were originally granted at the time of One97 Communications’ stock market listing. Based on the company’s closing share price of Rs 864.5, the total value of the surrendered shares is around Rs 1,815.45 crore.
Paytm Financials to See Boost
As per the official filing, this move will lead to a one-time non-cash expense of Rs 492 crore being accounted for in Q4 FY25. While this causes a temporary increase in ESOP expenses, it will reduce similar costs in future quarters. The accounting treatment for ESOPs is based on notional value, meaning this will not impact the company’s immediate cash reserves.
Vijay Shekhar Sharma Commitment
Sharma’s decision is seen as a major step toward supporting Paytm’s balance sheet and long-term financial health. By giving up such a large portion of his stock options, Sharma signals his continued trust in the company’s growth and sustainability. Industry experts view this as a rare gesture of self-sacrifice by a tech founder, aimed at securing the future of his company.
Move Comes at Crucial Time for Paytm
This development comes at a crucial time when Paytm is under the market’s microscope due to evolving regulatory expectations and operational challenges. The company has recently been making efforts to streamline its services and focus on profitability. Sharma’s decision to surrender ESOPs could provide a boost in investor sentiment and set an example for leadership in India’s startup ecosystem.
Vijay Shekhar Sharma’s voluntary ESOP surrender sends a powerful message about his dedication to Paytm and its future. As India’s fintech space continues to evolve, such actions may inspire greater accountability and long-term thinking across the ecosystem.
