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 parent company Eternal, has announced that he will be stepping down as the CEO of the company. As part of this transition, Goyal will also be giving up his unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This significant decision has sent ripples through the business world, with many analysts and investors trying to understand the implications of this move.
According to a report by the Economic Times, Goyal’s decision to give up his ESOPs will result in 3.3 crore shares returning to the company’s pool. This move is expected to have a positive impact on the company’s financials, as it will reduce the need for further dilution of ESOPs in the near future. Akshant Goyal, the company’s CFO, has stated that “because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This suggests that the company will have more flexibility in terms of its equity distribution, and will not have to worry about diluting its ESOPs as much in the near future.
The decision by Goyal to give up his ESOPs is a significant one, and it is likely to have far-reaching implications for the company. ESOPs are a key component of employee compensation, and they are often used to incentivize employees to perform well and to retain top talent. By giving up his ESOPs, Goyal is essentially forgoing a significant portion of his potential compensation, and this move is likely to be seen as a gesture of goodwill towards the company and its stakeholders.
It is worth noting that Goyal’s decision to step down as CEO is also a significant development, and it is likely to have a major impact on the company’s direction and strategy going forward. As the founder and CEO of Zomato, Goyal has been instrumental in shaping the company’s vision and mission, and his departure will likely be felt throughout the organization. However, the company has stated that Goyal will continue to be involved with the company, and will remain a key member of the board of directors.
The news of Goyal’s departure and his decision to give up his ESOPs has sent shockwaves through the business world, with many analysts and investors trying to understand the implications of this move. Some have speculated that Goyal’s decision to give up his ESOPs may be a sign of his commitment to the company’s long-term success, and his willingness to make sacrifices in order to ensure that the company is well-positioned for the future.
Others have pointed out that Goyal’s decision may also be motivated by a desire to avoid further dilution of his stake in the company. As the company continues to grow and expand, it is likely that there will be a need for further funding and investment, and this could result in further dilution of Goyal’s stake in the company. By giving up his ESOPs, Goyal may be able to avoid this dilution and maintain his current level of ownership in the company.
Overall, the decision by Deepinder Goyal to give up his ₹1,000-crore ESOPs as he steps down as CEO of Eternal is a significant development, and it is likely to have far-reaching implications for the company and its stakeholders. As the company continues to navigate the challenges and opportunities of the rapidly changing business landscape, it will be interesting to see how this move plays out, and what the future holds for Zomato and its parent company Eternal.
In conclusion, the news of Goyal’s departure and his decision to give up his ESOPs is a significant development, and it is likely to have a major impact on the company’s future direction and strategy. As the company continues to evolve and grow, it will be important to keep a close eye on developments and to see how this move plays out.
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