Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a shocking move, billionaire Deepinder Goyal, the CEO of Zomato parent company Eternal, has announced that he will be stepping down from his position as the company’s chief executive officer. As a result, Goyal will also be giving up his unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This decision has significant implications for the company, its employees, and its future plans.
According to a report by the Economic Times, Goyal’s decision to give up his ESOPs means that 3.3 crore shares will return to the company’s pool. This is a substantial amount, considering the company’s current market capitalization. The report also quotes Akshant Goyal, the company’s CFO, as saying, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This statement suggests that the company may not need to issue new ESOPs to its employees in the near future, which could have a positive impact on the company’s stock price.
The decision by Goyal to give up his ESOPs is a significant one, and it raises several questions about the future of the company. One of the main questions is why Goyal has decided to step down as CEO and give up his ESOPs. While the exact reasons for his decision are not clear, it is likely that Goyal wants to focus on other ventures and opportunities. As the founder of Zomato, Goyal has been instrumental in shaping the company’s vision and strategy, and his departure will likely be felt throughout the organization.
The impact of Goyal’s decision on the company’s employees is also significant. ESOPs are a key component of the company’s compensation package, and they provide employees with a sense of ownership and motivation. With Goyal giving up his ESOPs, the company will have more shares available to distribute to its employees, which could lead to increased employee satisfaction and retention. However, it is also possible that the company may not be able to offer the same level of ESOPs to its employees in the future, which could have a negative impact on morale.
Another important question is what this means for the future of Zomato and Eternal. Goyal’s departure as CEO will likely lead to a change in the company’s leadership and strategy. While the company has not announced a replacement for Goyal, it is likely that the new CEO will bring a fresh perspective and approach to the company’s operations. This could lead to new opportunities and challenges for the company, and it will be interesting to see how the company navigates this transition.
In terms of the company’s financials, Goyal’s decision to give up his ESOPs will have a positive impact on the company’s bottom line. With 3.3 crore shares returning to the company’s pool, the company will have more shares available to issue to its employees or to use for other purposes. This could lead to increased liquidity and flexibility for the company, which could be beneficial in the long term.
Overall, the news of Goyal’s decision to step down as CEO and give up his ESOPs is significant, and it will have far-reaching implications for Zomato and Eternal. While the exact reasons for his decision are not clear, it is likely that Goyal wants to focus on other ventures and opportunities. The company’s employees, investors, and customers will be watching closely to see how the company navigates this transition and what the future holds for Zomato and Eternal.
In conclusion, the decision by Deepinder Goyal to give up his ₹1,000-crore ESOPs as he steps down as CEO of Eternal is a significant one, and it will have a lasting impact on the company. While the exact reasons for his decision are not clear, it is likely that Goyal wants to focus on other ventures and opportunities. As the company navigates this transition, it will be interesting to see how the company’s leadership and strategy evolve, and what the future holds for Zomato and Eternal.
About the Author
