Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a significant development, billionaire Deepinder Goyal, the founder and CEO of Zomato’s parent company Eternal, has decided to step down as the CEO, and in the process, will give up unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This move is expected to have a significant impact on the company’s ESOP pool, with 3.3 crore shares set to return to the company.
According to a report by Economic Times, Goyal’s decision to give up his unvested ESOPs is a result of his decision to step down as the CEO of Eternal. The report states that Goyal will relinquish his claim on the unvested ESOPs, which are estimated to be worth around ₹1,000 crore. This means that the company will not have to honor these ESOPs, and the shares will return to the company’s pool.
The development is significant, as it will have a direct impact on the company’s ESOP policy. In a statement, Akshant Goyal, the company’s CFO, said, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This suggests that the company may not have to issue new ESOPs to its employees in the near future, as the returned shares will be sufficient to meet the company’s ESOP requirements.
The decision by Goyal to give up his unvested ESOPs is seen as a strategic move, aimed at ensuring the long-term sustainability of the company’s ESOP policy. By giving up his claim on the unvested ESOPs, Goyal is effectively reducing the company’s ESOP liability, which will have a positive impact on the company’s financials.
The development is also significant, as it highlights the importance of ESOPs in the startup ecosystem. ESOPs are a key component of the compensation package offered by startups to their employees, and are seen as a way to attract and retain top talent. By giving up his unvested ESOPs, Goyal is setting an example for other founders and CEOs, who may be considering similar moves.
The news of Goyal’s decision to give up his unvested ESOPs has sent shockwaves through the startup ecosystem, with many founders and CEOs praising Goyal’s move. The development is seen as a positive step, as it highlights the importance of responsible leadership and the need for founders and CEOs to prioritize the long-term sustainability of their companies.
In recent years, Zomato has been at the forefront of the food delivery market in India, and has been expanding its operations aggressively. The company has been investing heavily in its technology and logistics platform, and has been hiring top talent to drive its growth. The development is expected to have a positive impact on the company’s operations, as it will allow the company to focus on its core business and drive growth.
The decision by Goyal to give up his unvested ESOPs is also seen as a sign of his commitment to the company’s long-term sustainability. By giving up his claim on the unvested ESOPs, Goyal is effectively reducing his own stake in the company, and is prioritizing the company’s interests over his own personal interests.
In conclusion, the decision by Deepinder Goyal to give up his unvested ESOPs worth around ₹1,000 crore is a significant development, which is expected to have a positive impact on the company’s ESOP policy and its operations. The development highlights the importance of responsible leadership and the need for founders and CEOs to prioritize the long-term sustainability of their companies.
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