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 parent company Eternal, has decided to step down as the CEO of the company. As a result, he will be giving up unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This move is expected to have significant implications for the company, its employees, and its investors.
According to a report by the 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. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” said Akshant Goyal, the company’s CFO.
The decision by Goyal to give up his unvested ESOPs is a significant one, as it highlights his commitment to the company and its employees. ESOPs are a common practice in the startup world, where employees are granted shares in the company as a form of compensation. These shares vest over a period of time, and employees can exercise them to buy shares in the company at a predetermined price.
In this case, Goyal’s unvested ESOPs were worth around ₹1,000 crore, which is a significant amount. By giving up these ESOPs, Goyal is essentially returning the shares to the company’s pool, which can then be used to compensate other employees or for other purposes.
The implications of this move are significant. For one, it means that the company will not have to dilute its ESOPs again for a longer period, which is a positive development for its employees and investors. ESOP dilution can result in a decrease in the value of existing shares, which can be detrimental to employees who hold them. By avoiding ESOP dilution, the company can maintain the value of its shares and ensure that its employees are not negatively impacted.
Furthermore, Goyal’s decision to give up his unvested ESOPs highlights his commitment to the company and its employees. As the founder and CEO of Zomato, Goyal has been instrumental in the company’s growth and success. His decision to step down as CEO and give up his ESOPs demonstrates his willingness to put the company’s interests ahead of his own personal interests.
The news of Goyal’s decision to step down as CEO and give up his ESOPs has sent shockwaves through the startup community. Many are praising Goyal’s move, saying that it is a testament to his leadership and commitment to the company. Others are speculating about the reasons behind Goyal’s decision, with some suggesting that it may be related to the company’s plans for expansion and growth.
Regardless of the reasons behind Goyal’s decision, one thing is clear: his move will have significant implications for the company and its stakeholders. As the company navigates this transition, it will be interesting to see how it adapts to the changes and how it continues to grow and evolve.
In conclusion, the news of Deepinder Goyal’s decision to give up his ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development in the startup world. The implications of this move are far-reaching, and it will be interesting to see how the company navigates this transition. As the company continues to grow and evolve, it is clear that Goyal’s legacy will continue to shape its future.
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