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, has decided to step down as the CEO, and in the process, will give up unvested ESOPs (Employee Stock Ownership Plans) worth a staggering ₹1,000 crore. This decision has sent ripples through the business world, with many trying to understand the implications of such a move.
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. Akshant Goyal, the company’s CFO, was quoted 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 use them more judiciously in the future.
The decision by Deepinder Goyal to give up his unvested ESOPs is a significant one, and it raises several questions about the future of the company. One of the primary concerns is the impact on the company’s stock price. With 3.3 crore shares returning to the company’s pool, there is a possibility that the stock price may be affected. However, it is essential to note that the company’s fundamentals remain strong, and the decision by Goyal to step down as CEO is not necessarily a reflection on the company’s performance.
In fact, Zomato has been performing well in recent times, with the company reporting significant growth in its revenue and user base. The company’s expansion into new markets and its focus on improving its services have been key drivers of its success. As such, it is unlikely that Goyal’s decision to step down as CEO will have a significant impact on the company’s stock price in the long term.
Another question that arises from this development is the reason behind Goyal’s decision to step down as CEO. While the exact reasons are not clear, it is possible that Goyal may be looking to focus on other ventures or interests. As the founder of the company, Goyal has been instrumental in shaping Zomato’s strategy and direction, and his decision to step down may be a sign that he is looking to pass on the mantle to a new leader.
The decision by Goyal to give up his unvested ESOPs is also significant from a personal perspective. With an estimated value of ₹1,000 crore, these ESOPs represent a significant portion of Goyal’s personal wealth. By giving them up, Goyal is essentially forgoing a substantial amount of money that could have been his if he had chosen to stay on as CEO.
However, it is essential to note that Goyal’s decision to give up his ESOPs is not necessarily a sacrifice. As the founder of the company, Goyal has already accumulated a significant amount of wealth, and his decision to step down as CEO may be driven by a desire to focus on other aspects of his life. Additionally, by giving up his ESOPs, Goyal is also ensuring that the company’s ESOP pool is conserved, which could be beneficial for the company’s employees and future growth.
In conclusion, the decision by Deepinder Goyal to give up his unvested ESOPs as he steps down as CEO of Eternal is a significant development that has far-reaching implications. While the exact reasons behind Goyal’s decision are not clear, it is evident that the company’s ESOP pool will be conserved, and the company’s stock price may not be significantly impacted in the long term. As the company looks to the future, it will be interesting to see how Goyal’s decision affects its growth and direction.
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