Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a shocking turn of events, billionaire Deepinder Goyal, the founder and CEO of Zomato’s parent company Eternal, is set to give up unvested Employee Stock Ownership Plans (ESOPs) worth a staggering ₹1,000 crore as he steps down from his position as CEO. This news has sent ripples through the business community, with many wondering what this move could mean for the company’s future.
According to a report by the Economic Times, Goyal’s decision to relinquish his unvested ESOPs will result in 3.3 crore shares returning to the company’s pool. This move is seen as a significant development, as it will likely have a positive impact on the company’s ESOP allocation in the long run. As Akshant Goyal, the company’s CFO, noted, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.”
The decision by Goyal to give up his ESOPs is a remarkable one, considering the significant value of the shares involved. ₹1,000 crore is a substantial amount, and it is unusual for a founder and CEO to relinquish such a large portion of their equity. However, it is clear that Goyal is committed to putting the interests of the company first, even if it means making a personal sacrifice.
So, what could be the reasons behind Goyal’s decision to give up his ESOPs? One possible explanation is that he wants to ensure that the company’s ESOP pool is sufficient to incentivize and reward its employees. By returning 3.3 crore shares to the pool, Goyal is effectively increasing the number of shares available for allocation to other employees. This move could help to boost employee morale and motivation, as well as attract and retain top talent in the industry.
Another possible reason for Goyal’s decision is that he wants to demonstrate his commitment to the company’s long-term success. By giving up his personal stake in the company, Goyal is sending a strong signal that he is dedicated to the well-being of Eternal and its employees, rather than just his own personal interests. This move could help to build trust and confidence among investors, employees, and customers, which is essential for the company’s continued growth and success.
The news of Goyal’s decision to give up his ESOPs has also sparked speculation about his future plans. Will he remain involved with the company in some capacity, or will he pursue new ventures and opportunities? While it is unclear what the future holds for Goyal, one thing is certain – his decision to relinquish his ESOPs will have a lasting impact on the company and its employees.
In conclusion, the news that Deepinder Goyal is giving up ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development that will be closely watched by the business community. While the reasons behind Goyal’s decision are not entirely clear, it is evident that he is committed to putting the interests of the company first. As the company moves forward, it will be interesting to see how Goyal’s decision affects the ESOP allocation and the overall direction of the company.
For more information on this story, please visit: https://www.timesnownews.com/business-economy/companies/why-deepinder-goyal-is-likely-to-walk-away-from-nearly-rs-1000-crore-esops-article-153490053/amp
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