Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a significant development, billionaire Deepinder Goyal, the founder and CEO of Zomato’s parent company Eternal, is set to give up unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore as he steps down from his role as CEO. This move is expected to have a significant impact on the company’s stock pool, with 3.3 crore shares returning to the company. The news was reported by the Economic Times, citing sources familiar with the development.
The decision by Goyal to give up his unvested ESOPs is seen as a strategic move, aimed at ensuring that the company does not have to dilute its ESOPs again in the near future. According to Akshant Goyal, the company’s Chief Financial Officer (CFO), “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This suggests that the company is looking to conserve its ESOPs and avoid diluting them further, at least for the time being.
The ESOPs that Goyal is giving up are estimated to be worth around ₹1,000 crore, which is a significant amount. ESOPs are a common practice in the startup world, where employees are given a certain percentage of the company’s shares as a form of compensation. These shares vest over a period of time, typically 4-5 years, and can be exercised by the employee once they have vested. In Goyal’s case, the unvested ESOPs will return to the company’s pool, increasing the number of shares available for future allocation.
The move by Goyal to give up his ESOPs is seen as a positive development for the company, as it will help to conserve the company’s stock and avoid dilution. Dilution of ESOPs can have a negative impact on the company’s stock price, as it increases the number of shares outstanding and can lead to a decrease in the company’s earnings per share. By giving up his unvested ESOPs, Goyal is helping to mitigate this risk and ensure that the company’s stock remains stable.
Goyal’s decision to step down as CEO of Eternal is also seen as a significant development. As the founder and CEO of the company, Goyal has been instrumental in shaping the company’s strategy and vision. His decision to step down is likely to have a significant impact on the company’s future direction and growth. However, the company has not announced who will take over as CEO, and it is unclear what Goyal’s next move will be.
The news of Goyal giving up his ESOPs has sent shockwaves through the startup community, with many entrepreneurs and investors taking to social media to comment on the development. While some have praised Goyal’s decision, others have questioned the timing and motivations behind it. Regardless of the reasons, one thing is clear: Goyal’s decision to give up his ESOPs will have a significant impact on the company’s future and will be closely watched by investors and analysts.
In conclusion, the news of Deepinder Goyal giving up his unvested ESOPs worth around ₹1,000 crore is a significant development that is likely to have a major impact on the company’s future. The move is seen as a strategic decision aimed at conserving the company’s stock and avoiding dilution. As the company navigates this transition, it will be interesting to see how Goyal’s decision plays out and what the future holds for Eternal.
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