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 position as CEO. 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 transition out of the CEO role. The report states that Goyal will be relinquishing his claim to the unvested ESOPs, which were granted to him as part of his compensation package. This means that the 3.3 crore shares that were allocated to Goyal will now return to the company’s ESOP pool, providing a significant boost to the company’s stock ownership plans.
The development was confirmed by Akshant Goyal, the company’s Chief Financial Officer, who stated that the return of the unvested ESOPs to the company’s pool will have a positive impact on the company’s ESOP dilution. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” Akshant Goyal said. This suggests that the company may not need to issue new ESOPs to employees in the near future, which could help to reduce the dilution of existing shares.
The decision by Deepinder Goyal to give up his unvested ESOPs is seen as a significant move, given the value of the shares involved. The ₹1,000 crore worth of ESOPs that Goyal is relinquishing is a substantial amount, and it reflects the company’s commitment to its employees and its ESOP program. The move is also seen as a testament to Goyal’s leadership and his willingness to put the interests of the company ahead of his own personal interests.
The development is also significant in the context of Zomato’s parent company Eternal, which has been in the news recently due to its plans to expand its business and diversify its operations. The company has been investing heavily in new initiatives, including its food delivery business, and has been looking to strengthen its position in the market. The return of the unvested ESOPs to the company’s pool is expected to provide a boost to the company’s ESOP program, which is seen as an important tool for attracting and retaining talent.
The news of Deepinder Goyal’s decision to give up his unvested ESOPs has been met with interest from the business community, with many seeing it as a positive development for the company. The move is expected to have a positive impact on the company’s stock price, and it is seen as a reflection of the company’s commitment to its employees and its ESOP program.
In conclusion, the decision by Deepinder Goyal to give up his unvested ESOPs worth around ₹1,000 crore is a significant development that is expected to have a positive impact on the company’s ESOP program. The return of the 3.3 crore shares to the company’s pool is expected to provide a boost to the company’s stock ownership plans, and it reflects the company’s commitment to its employees and its ESOP program. As the company continues to expand its business and diversify its operations, the move is seen as a positive development that will help to attract and retain talent.
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