Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a shocking turn of events, billionaire Deepinder Goyal, the CEO of Zomato parent company Eternal, has decided to step down from his position, and in doing so, will give up unvested ESOPs (Employee Stock Ownership Plans) worth a staggering ₹1,000 crore. This decision has significant implications for the company, and according to a report by Economic Times, 3.3 crore shares will return to the company’s pool as a result.
The news has sent shockwaves through the business community, with many analysts and experts trying to understand the reasoning behind Goyal’s decision. As the CEO of Eternal, Goyal has been instrumental in shaping the company’s vision and strategy, and his departure is likely to have a significant impact on the company’s future plans.
According to Akshant Goyal, the company’s CFO, the return of 3.3 crore shares to the company’s pool is a significant development. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” he said. This statement suggests that the company may not need to issue new ESOPs to employees in the near future, which could have a positive impact on the company’s stock price.
The decision by Goyal to give up his unvested ESOPs is also likely to have a significant impact on his personal wealth. With an estimated value of ₹1,000 crore, these ESOPs represent a significant portion of Goyal’s net worth. However, it appears that Goyal is willing to make this sacrifice in order to ensure the long-term success of the company.
So, what led to Goyal’s decision to step down as CEO and give up his unvested ESOPs? While the exact reasons are not clear, it is likely that Goyal’s decision is part of a larger strategy to ensure the company’s continued growth and success. As the CEO of Eternal, Goyal has been under immense pressure to deliver results, and the company’s recent performance has been under scrutiny.
In recent months, Zomato has faced significant challenges, including increased competition from other food delivery companies and regulatory hurdles. Despite these challenges, the company has continued to grow and expand its operations, and Goyal’s decision to step down may be seen as a sign of confidence in the company’s ability to continue to succeed without him at the helm.
The news of Goyal’s decision to give up his unvested ESOPs has also raised questions about the company’s ESOP policy. ESOPs are a common practice in the corporate world, where employees are granted shares in the company as part of their compensation package. However, the vesting period for these shares can be several years, and employees may not be able to realize the full value of their ESOPs until they have vested.
In this case, Goyal’s decision to give up his unvested ESOPs means that he will not be able to realize the full value of these shares. However, the return of 3.3 crore shares to the company’s pool is likely to have a positive impact on the company’s stock price, which could benefit other shareholders.
As the news of Goyal’s decision continues to unfold, it is clear that this development will have significant implications for Eternal and its stakeholders. While the exact reasons behind Goyal’s decision are not clear, it is likely that this move is part of a larger strategy to ensure the company’s continued growth and success.
In conclusion, the decision by Deepinder Goyal to give up his unvested ESOPs worth ₹1,000 crore as he steps down as CEO of Eternal is a significant development that will have far-reaching implications for the company and its stakeholders. As the company continues to navigate the challenges of the food delivery market, it is clear that Goyal’s decision is a testament to his commitment to the company’s long-term success.
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