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 and give up his unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This move is expected to have significant implications for the company and its stakeholders.
According to a report by Economic Times, Goyal’s decision to relinquish his ESOPs will result in 3.3 crore shares returning to the company’s pool. This development has been confirmed by the company’s Chief Financial Officer, Akshant Goyal, who stated, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” The return of these shares to the company’s pool is expected to provide a significant boost to the company’s treasury and reduce the need for future dilution of ESOPs.
The decision by Goyal to give up his ESOPs is a significant one, considering the value of the shares he is relinquishing. ₹1,000 crore is a substantial amount, and it is likely that Goyal’s decision was not taken lightly. However, the move is seen as a positive development for the company, as it will help to reduce the burden of ESOPs on the company’s balance sheet.
ESOPs are a common practice in the startup world, where employees are granted shares in the company as a form of compensation. The idea behind ESOPs is to incentivize employees to work towards the growth and success of the company, as their shares will increase in value if the company performs well. However, ESOPs can also become a significant burden on the company’s balance sheet, particularly if the company needs to dilute its shares to raise capital.
In the case of Eternal, the return of 3.3 crore shares to the company’s pool is expected to provide a significant boost to the company’s treasury. The company can use these shares to reward its employees, attract new talent, or even use them to raise capital in the future. The fact that the company may not need to dilute its ESOPs again for slightly longer is a positive development, as it will help to maintain the value of the shares held by existing employees and investors.
The news of Goyal’s decision to step down as CEO and give up his ESOPs has sent shockwaves through the startup community. Goyal is a highly respected entrepreneur and investor, and his decision to relinquish his shares is seen as a significant development. The move is likely to be closely watched by investors, employees, and other stakeholders, who will be eager to see how the company performs under new leadership.
The reasons behind Goyal’s decision to step down as CEO are not entirely clear, but it is likely that he wants to focus on other ventures and interests. As the founder of Zomato, Goyal has been instrumental in shaping the company’s vision and strategy, and his departure will be felt. However, the company is expected to continue to perform well, thanks to the strong foundation laid by Goyal and his team.
In conclusion, the decision by Deepinder Goyal to give up his ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development that is expected to have far-reaching implications for the company and its stakeholders. The return of 3.3 crore shares to the company’s pool is a positive development, as it will help to reduce the burden of ESOPs on the company’s balance sheet and provide a significant boost to the company’s treasury.
As the startup community continues to watch the developments at Eternal with great interest, one thing is clear: the decision by Goyal to relinquish his ESOPs is a testament to his commitment to the company and its stakeholders. The move is likely to be seen as a positive development, and it will be interesting to see how the company performs under new leadership.
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