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’s parent company Eternal, has decided to step down from his position as CEO. As a result, he will be giving up unvested Employee Stock Ownership Plans (ESOPs) worth a staggering ₹1,000 crore. This move is expected to have significant implications for the company, and we will delve into the details of this development in this blog post.
According to a report by Economic Times, Goyal’s decision to step down as CEO will result in the return of 3.3 crore shares 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. As Akshant Goyal, the company’s CFO, stated, “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 avoid diluting them further, at least for the time being.
The decision by Goyal to give up his unvested ESOPs is a significant one, and it raises several questions about the future of the company. One of the primary concerns is the impact that this will have on the company’s leadership and direction. As the founder and CEO of Eternal, Goyal has been instrumental in shaping the company’s vision and strategy. His departure from the CEO position will undoubtedly create a void, and it will be interesting to see how the company navigates this transition.
Another important aspect to consider is the financial implications of Goyal’s decision. The ₹1,000 crore worth of ESOPs that he is giving up is a significant amount, and it will undoubtedly have an impact on the company’s financials. However, as mentioned earlier, the return of 3.3 crore shares to the company’s pool will help to conserve the company’s ESOPs and avoid dilution. This could have a positive impact on the company’s stock price and overall financial health.
It is also worth noting that Goyal’s decision to step down as CEO may be a strategic move to allow the company to bring in fresh leadership and perspectives. As the company continues to grow and evolve, it may be beneficial to have a new leader at the helm who can bring a fresh perspective and new ideas to the table. This could be particularly important as the company navigates the challenges and opportunities of the rapidly changing food delivery and restaurant industry.
In addition to the implications for the company, Goyal’s decision to give up his ESOPs also raises questions about his personal financial situation. As a billionaire, Goyal is undoubtedly financially secure, and it is unlikely that the loss of ₹1,000 crore in ESOPs will have a significant impact on his personal wealth. However, it is still a significant amount, and it will be interesting to see how he chooses to allocate his resources and investments in the future.
In conclusion, the decision by Deepinder Goyal to step down as CEO of Eternal and give up his unvested ESOPs worth ₹1,000 crore is a significant development that will have far-reaching implications for the company. While it raises several questions about the company’s leadership and direction, it also presents opportunities for the company to bring in fresh perspectives and conserve its ESOPs. As the company navigates this transition, it will be important to keep a close eye on its progress and see how it adapts to the changing landscape of the food delivery and restaurant industry.
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