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, has decided to step down as the CEO of the company. As a result, he will also be giving up his unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This decision has sent ripples through the business world, with many analysts and experts trying to understand the implications of this move.
According to a report by Economic Times, Goyal’s decision to step down as CEO will result in the return of 3.3 crore shares to the company’s pool. This is a significant development, as it means that the company will not have to dilute its ESOPs again for a longer period. As stated by the company’s CFO, Akshant Goyal, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This statement suggests that the company is looking to conserve its ESOPs and avoid diluting them further, at least for the time being.
The decision by Goyal to give up his ESOPs is a significant one, as it represents a substantial portion of his net worth. ESOPs are a common practice in the corporate world, where employees are granted shares of the company as a form of compensation. These shares vest over a period of time, allowing employees to benefit from the company’s growth and success. In Goyal’s case, his ESOPs were worth around ₹1,000 crore, which is a staggering amount by any standards.
So, why has Goyal decided to give up his ESOPs? The answer to this question is not entirely clear, but it is likely that Goyal’s decision is linked to his decision to step down as CEO of Eternal. As the founder and CEO of the company, Goyal has been instrumental in shaping the company’s vision and strategy. However, as the company continues to grow and evolve, it is possible that Goyal feels that it is time for him to move on and allow new leadership to take the reins.
The implications of Goyal’s decision are significant, not just for Eternal but also for the broader business community. The fact that Goyal is giving up his ESOPs suggests that he is committed to the long-term success of the company, even if it means sacrificing his own personal interests. This move is likely to be seen as a positive development by investors and stakeholders, as it demonstrates Goyal’s commitment to the company’s growth and success.
In addition, Goyal’s decision may also have implications for the company’s governance structure. As the founder and CEO, Goyal has played a dominant role in shaping the company’s strategy and direction. However, as he steps down, it is likely that the company will need to establish a new governance structure, with a new CEO and leadership team. This could lead to a period of transition and adjustment, as the company adapts to new leadership and a new direction.
Overall, the news of Goyal’s decision to give up his ESOPs is a significant development, with far-reaching implications for Eternal and the broader business community. As the company continues to grow and evolve, it will be interesting to see how Goyal’s decision plays out and what the future holds for the company.
In conclusion, Deepinder Goyal’s decision to give up his ₹1,000-crore ESOPs as he steps down as CEO of Eternal is a significant development that is likely to have far-reaching implications for the company and the broader business community. As the company continues to grow and evolve, it will be interesting to see how Goyal’s decision plays out and what the future holds for the company.
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