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 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 move is expected to have significant implications for the company, its employees, and its investors.
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 is a significant development, as it means that the company will not have to dilute its ESOPs again for a longer period. In a statement, the company’s CFO Akshant Goyal said, “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 strategically to attract and retain top talent in the future.
The decision by Goyal to give up his ESOPs is seen as a significant sacrifice, given that the value of the shares is estimated to be around ₹1,000 crore. However, it is also being seen as a strategic move by the company to conserve its ESOPs and use them to drive growth and expansion in the future. By giving up his ESOPs, Goyal is essentially putting the interests of the company and its employees ahead of his own personal interests.
The news of Goyal’s decision to step down as CEO and give up his ESOPs has sent shockwaves through the industry, with many analysts and experts weighing in on the implications of this move. Some have praised Goyal’s decision, seeing it as a selfless act that demonstrates his commitment to the company and its employees. Others have raised questions about the timing and motivations behind Goyal’s decision, suggesting that there may be more to the story than meets the eye.
One thing is certain, however: Goyal’s decision to give up his ESOPs will have significant implications for the company and its stakeholders. With 3.3 crore shares returning to the company’s pool, Eternal will have more flexibility to use its ESOPs to attract and retain top talent, drive growth and expansion, and achieve its strategic objectives. This could be a major boost for the company, which has been facing intense competition in the food delivery and restaurant space.
In recent years, Zomato has been expanding its operations aggressively, both in India and internationally. The company has been investing heavily in new technologies, marketing, and customer acquisition, and has been looking to drive growth and expansion through strategic partnerships and acquisitions. With Goyal’s decision to give up his ESOPs, the company will have more resources and flexibility to pursue these strategic objectives and achieve its goals.
The news of Goyal’s decision to step down as CEO and give up his ESOPs has also raised questions about the future leadership and direction of the company. While Goyal will remain with the company as a member of the board of directors, his decision to step down as CEO will create a power vacuum that will need to be filled. The company will need to identify a new CEO who can take the reins and drive the company forward, while also navigating the complex and competitive landscape of the food delivery and restaurant industry.
In conclusion, the news of Deepinder Goyal’s decision to give up his ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development that will have far-reaching implications for the company, its employees, and its stakeholders. While the motivations behind Goyal’s decision are not entirely clear, it is evident that this move is a strategic one that will give the company more flexibility and resources to drive growth and expansion in the future. As the company looks to navigate the challenges and opportunities of the food delivery and restaurant industry, it will be interesting to see how Goyal’s decision plays out and what the future holds for Eternal and its stakeholders.
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