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 founder and CEO of Zomato’s parent company Eternal, has decided to give up his unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore as he steps down as the CEO of the company. This decision has significant implications for the company and its stakeholders. According to a report by Economic Times, Goyal’s decision to forfeit his ESOPs means that 3.3 crore shares will return to the company’s pool, providing a much-needed boost to the company’s ESOP reserve.
The news of Goyal’s decision to give up his ESOPs has sent shockwaves in the business community, with many analysts and experts trying to decipher the reasons behind this move. While Goyal’s decision may seem unprecedented, it is not entirely unexpected. The billionaire founder has been known for his unconventional approach to business and his commitment to the long-term success of his company.
The decision to give up his ESOPs is likely to have a positive impact on the company’s ESOP reserve, which has been depleted in recent years due to the high demand for stocks from employees. The return of 3.3 crore shares to the company’s pool will provide a significant boost to the reserve, allowing the company to grant more ESOPs to its employees in the future. This, in turn, is expected to improve employee morale and motivation, as well as attract and retain top talent in the industry.
According to Akshant Goyal, the company’s CFO, the return of ESOPs to the company’s pool means that they may not need to dilute their ESOPs again for slightly longer. This is a significant development, as it will allow the company to conserve its cash reserves and focus on its growth and expansion plans. The company has been investing heavily in its food delivery business, and the conservation of cash reserves will provide a much-needed boost to its plans.
The decision by Goyal to give up his ESOPs is also seen as a testament to his commitment to the company and its stakeholders. By forfeiting his ESOPs, Goyal is putting the interests of the company and its employees ahead of his own personal interests. This move is expected to improve the company’s credibility and reputation, both among its stakeholders and in the wider business community.
The news of Goyal’s decision to give up his ESOPs has also sparked a debate about the role of ESOPs in motivating employees and driving business growth. ESOPs have long been seen as a key tool for attracting and retaining top talent, as well as aligning the interests of employees with those of the company. However, the high cost of ESOPs has also been a subject of controversy, with some companies struggling to conserve their cash reserves due to the high demand for stocks from employees.
In this context, Goyal’s decision to give up his ESOPs is seen as a bold move that may set a new precedent for companies in the industry. By prioritizing the interests of the company and its stakeholders, Goyal is showing that business leaders can make sacrifices for the greater good. This move is expected to inspire other business leaders to follow suit, and may lead to a shift in the way companies approach ESOPs and employee motivation.
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 has far-reaching implications for the company and its stakeholders. The return of 3.3 crore shares to the company’s pool will provide a much-needed boost to the company’s ESOP reserve, allowing it to grant more ESOPs to its employees in the future. The move is also seen as a testament to Goyal’s commitment to the company and its stakeholders, and may set a new precedent for companies in the industry.
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