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, has decided to step down as the CEO, and in the process, will give up unvested ESOPs (Employee Stock Ownership Plans) worth around ₹1,000 crore. This move is expected to have a significant impact on the company’s ESOP pool, with 3.3 crore shares set to return to the company.
According to a report by Economic Times, Goyal’s decision to give up his unvested ESOPs is a result of his decision to step down as the CEO of Eternal. This means that the company will not have to dilute its ESOPs again for a slightly longer period, as stated by the company’s CFO, Akshant Goyal. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” he said.
The move is seen as a significant development in the Indian startup ecosystem, where ESOPs have become a crucial tool for attracting and retaining top talent. ESOPs are a type of benefit plan that allows employees to own a certain percentage of the company’s shares, which can be a significant motivator for employees to work towards the company’s growth and success.
Goyal’s decision to give up his ESOPs is expected to have a positive impact on the company’s finances, as it will reduce the company’s ESOP liability. The company had earlier stated that it would have to dilute its ESOPs to meet the growing demand for shares from its employees. However, with Goyal’s decision to give up his ESOPs, the company may not have to dilute its ESOPs again for a slightly longer period, as stated by the CFO.
The development is also seen as a significant milestone in Goyal’s journey as the founder and CEO of Zomato. Goyal founded Zomato in 2008, and since then, the company has grown to become one of the largest food delivery companies in India. Under Goyal’s leadership, Zomato has expanded its operations to several countries, including the United Arab Emirates, Sri Lanka, and Indonesia.
Goyal’s decision to step down as the CEO of Eternal is seen as a natural progression, given the company’s growth and expansion plans. The company has stated that it will continue to focus on its core business of food delivery, while also exploring new opportunities in the areas of fintech and e-commerce.
The news of Goyal’s decision to give up his ESOPs has sent shockwaves in the Indian startup ecosystem, with many experts hailing the move as a significant development. “This is a great move by Deepinder Goyal, as it shows his commitment to the company and its employees,” said an expert. “By giving up his ESOPs, Goyal is ensuring that the company’s ESOP pool remains intact, which will be a significant motivator for the company’s employees.”
The development is also seen as a significant milestone in the Indian startup ecosystem, where founders and CEOs are often seen as role models. Goyal’s decision to give up his ESOPs is expected to set a precedent for other founders and CEOs, who may be inspired to follow in his footsteps.
In conclusion, Deepinder Goyal’s decision to give up his ₹1,000-crore ESOPs as he steps down as the CEO of Eternal is a significant development that is expected to have a positive impact on the company’s finances and ESOP pool. The move is seen as a natural progression, given the company’s growth and expansion plans, and is expected to set a precedent for other founders and CEOs in the Indian startup ecosystem.
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