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 parent company Eternal, has decided to step down from his position, giving up unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This significant development was reported by the Economic Times, which stated that Goyal’s decision to relinquish his ESOPs will result in 3.3 crore shares returning to the company’s pool.
The news has sent ripples through the business world, with many analysts and industry experts weighing in on the implications of Goyal’s decision. According to Akshant Goyal, the company’s Chief Financial Officer, the return of these shares to the company’s pool will have a positive impact on Eternal’s ESOPs. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” he said, hinting that the company may not need to issue new ESOPs to employees in the near future.
For those unfamiliar with ESOPs, they are a type of employee benefit plan that allows employees to own a portion of the company’s shares. ESOPs are often used as a retention tool, motivating employees to work towards the company’s growth and success. In the case of Eternal, the ESOPs were a key component of the company’s compensation package, attracting top talent and incentivizing employees to contribute to the company’s rapid growth.
Goyal’s decision to give up his ESOPs is a significant one, considering the substantial value of the shares involved. ₹1,000 crore is a staggering amount, equivalent to approximately $125 million USD. This amount represents a significant portion of Goyal’s personal wealth, which is estimated to be in the billions. By giving up these ESOPs, Goyal is essentially forgoing a substantial amount of personal wealth, demonstrating his commitment to the company’s success and his willingness to prioritize the interests of Eternal over his own personal gain.
So, what prompted Goyal to make this decision? While the exact reasons are not entirely clear, it is likely that Goyal’s decision is linked to his plans to step down as CEO of Eternal. As the company’s founder and leader, Goyal has been instrumental in shaping Eternal’s vision and strategy. However, as the company continues to grow and evolve, it is possible that Goyal feels it is time for new leadership to take the reins.
By giving up his ESOPs, Goyal is also ensuring a smooth transition of power and minimizing any potential disruptions to the company’s operations. The return of 3.3 crore shares to the company’s pool will provide Eternal with a significant amount of flexibility in terms of its ESOPs, allowing the company to attract and retain top talent without having to dilute its existing shareholding.
The news of Goyal’s decision has been met with a mix of surprise and admiration from the business community. Many have praised Goyal’s selflessness and commitment to the company’s success, while others have expressed concern about the potential implications of his departure. As Eternal navigates this transition, it will be interesting to see how the company adapts to new leadership and continues to drive growth and innovation in the competitive food delivery and restaurant space.
In conclusion, Deepinder Goyal’s decision to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development that will have far-reaching implications for the company. As Eternal continues to evolve and grow, it is clear that Goyal’s legacy will endure, and his commitment to the company’s success will remain unwavering. For more information on this story, please visit: https://www.timesnownews.com/business-economy/companies/why-deepinder-goyal-is-likely-to-walk-away-from-nearly-rs-1000-crore-esops-article-153490053/amp
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