Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a shocking move, 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 around ₹1,000 crore as he steps down from his position as CEO. According to a report by the Economic Times, this decision will result in 3.3 crore shares returning to the company’s pool, which is expected to have a significant impact on the company’s future plans.
The news of Goyal’s decision to give up his ESOPs has sent shockwaves in the business community, with many analysts and experts trying to understand the implications of this move. As per the report, Goyal’s decision to relinquish his unvested ESOPs is a significant one, as it will not only affect his personal wealth but also have a bearing on the company’s future plans.
The Economic Times report quotes Akshant Goyal, the company’s CFO, as saying, “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 return of 3.3 crore shares to the company’s pool is expected to provide a significant boost to the company’s ESOP reserve, which will enable it to reward its employees and attract new talent without having to dilute its equity further.
The decision by Goyal to give up his ESOPs is also seen as a strategic move to ensure the long-term sustainability of the company. By relinquishing his unvested ESOPs, Goyal is demonstrating his commitment to the company’s future and his confidence in its ability to grow and succeed without his direct involvement as CEO.
The development comes at a time when Zomato, the food delivery giant, is facing intense competition in the market. The company has been investing heavily in its technology and logistics infrastructure to stay ahead of the competition, and the return of ESOPs to the company’s pool is expected to provide a significant boost to its plans.
The move is also seen as a testament to Goyal’s leadership and vision for the company. By giving up his personal interests, Goyal is putting the interests of the company and its stakeholders ahead of his own, which is a rare trait in corporate leaders. The decision is expected to earn him praise and respect from the business community, and cement his reputation as a visionary leader.
The news of Goyal’s decision to give up his ESOPs has also sparked a debate about the role of ESOPs in startups and their impact on the company’s growth and sustainability. ESOPs are a common practice in startups, where employees are rewarded with stock options as a form of compensation. However, the dilution of equity that comes with ESOPs can be a challenge for companies, especially when they are looking to raise fresh capital or list on the stock exchanges.
In the case of Eternal, the return of ESOPs to the company’s pool is expected to provide a significant boost to its plans, and enable it to conserve its equity for future growth. The move is also seen as a positive development for the company’s employees, who will benefit from the increased ESOP reserve and the company’s commitment to rewarding its talent.
In conclusion, the decision by Deepinder Goyal to give up his unvested ESOPs worth around ₹1,000 crore is a significant development that is expected to have a major impact on the company’s future plans. The return of 3.3 crore shares to the company’s pool is expected to provide a significant boost to the company’s ESOP reserve, and enable it to conserve its equity for future growth. The move is a testament to Goyal’s leadership and vision for the company, and is expected to earn him praise and respect from the business community.
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