Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a surprise move, billionaire Deepinder Goyal, the founder and CEO of Zomato parent company Eternal, has decided to step down from his position. As he relinquishes his role, Goyal will also give up his unvested Employee Stock Ownership Plans (ESOPs) worth approximately ₹1,000 crore. This decision will result in the return of 3.3 crore shares to the company’s pool, as reported by the Economic Times.
This news has sent shockwaves through the business community, with many analysts and experts weighing in on the implications of Goyal’s decision. According to Akshant Goyal, the company’s Chief Financial Officer, the return of these shares to the company’s pool will have a positive impact on Eternal’s ESOPs. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” he stated.
To understand the significance of this development, it’s essential to delve into the world of ESOPs and their role in the corporate landscape. ESOPs are a type of employee benefit plan that allows employees to own a portion of the company’s shares. They are often used as a retention tool, incentivizing employees to perform well and contribute to the company’s growth. In the case of Eternal, ESOPs have been a crucial aspect of the company’s strategy, attracting and retaining top talent in the competitive tech industry.
The decision by Deepinder Goyal to give up his unvested ESOPs is a significant one, with far-reaching implications for the company. The return of 3.3 crore shares to the company’s pool will not only reduce the need for further dilution of ESOPs but also provide a boost to the company’s treasury. This, in turn, will give Eternal more flexibility to make strategic decisions, invest in growth initiatives, and explore new opportunities.
The move also highlights Goyal’s commitment to the company’s long-term success. By giving up his personal interests, he is demonstrating his faith in the company’s future prospects and his willingness to make sacrifices for the greater good. This selfless act is likely to inspire confidence among investors, employees, and stakeholders, who will view Goyal’s decision as a testament to his leadership and vision.
As the news of Goyal’s decision spreads, the business community is abuzz with speculation about the reasons behind his move. Some analysts believe that Goyal’s decision may be linked to the company’s plans for expansion and growth. With the return of shares to the company’s pool, Eternal may be better positioned to pursue strategic acquisitions, invest in new technologies, or explore new markets.
Others have suggested that Goyal’s decision may be driven by a desire to simplify the company’s ownership structure. By giving up his unvested ESOPs, Goyal may be seeking to reduce the complexity of the company’s equity holdings, making it easier for Eternal to navigate the regulatory landscape and comply with listing requirements.
While the exact motivations behind Goyal’s decision may never be fully known, one thing is clear: his selfless act will have a lasting impact on the company he founded. As Eternal looks to the future, it will do so with a renewed sense of purpose and a stronger foundation, thanks to the sacrifice of its founder and former CEO.
In conclusion, the news of Deepinder Goyal’s decision to give up his unvested ESOPs worth ₹1,000 crore is a significant development in the business world. As the founder and former CEO of Eternal, Goyal’s selfless act will have far-reaching implications for the company, its employees, and its stakeholders. As we look to the future, it will be interesting to see how Eternal navigates the challenges and opportunities that lie ahead, armed with a stronger balance sheet and a renewed sense of purpose.
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