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 parent company Eternal, has decided to give up his 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 significant implications for the company, its employees, and the overall Indian startup ecosystem.
According to a report by the Economic Times, Goyal’s decision to relinquish his ESOPs will result in the return of 3.3 crore shares 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.” 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 financials.
The news of Goyal’s decision to give up his ESOPs has sent shockwaves through the Indian startup community, with many experts and analysts trying to decipher the reasons behind this move. While the exact motivations behind Goyal’s decision are not clear, it is likely that he wants to ensure a smooth transition of power and avoid any potential conflicts of interest as he steps down as CEO.
Goyal’s decision to give up his ESOPs is also being seen as a testament to his commitment to the company and its employees. By relinquishing his ESOPs, Goyal is essentially putting the interests of the company and its stakeholders ahead of his own personal interests. This move is likely to be seen as a positive development by the company’s investors, employees, and customers, who will be reassured by Goyal’s selfless decision.
The implications of Goyal’s decision to give up his ESOPs are far-reaching and multifaceted. For one, it will result in a significant reduction in the company’s ESOP liability, which will have a positive impact on the company’s financials. Additionally, the return of 3.3 crore shares to the company’s pool will give the company more flexibility to issue new ESOPs to its employees in the future, which could help to attract and retain top talent.
Furthermore, Goyal’s decision to give up his ESOPs will also have a positive impact on the company’s governance structure. By relinquishing his ESOPs, Goyal will no longer have a significant stake in the company, which will help to ensure that the company is run in a fair and transparent manner. This will be particularly important as the company navigates the challenges and opportunities of the rapidly evolving Indian startup ecosystem.
In conclusion, Deepinder Goyal’s decision to give up his ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development that will have far-reaching implications for the company, its employees, and the Indian startup ecosystem. While the exact motivations behind Goyal’s decision are not clear, it is likely that he wants to ensure a smooth transition of power and avoid any potential conflicts of interest. As the company navigates this new era, it will be interesting to see how Goyal’s decision to give up his ESOPs will impact the company’s future growth and success.
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