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 a staggering ₹1,000 crore as he steps down from his position as CEO. This decision, as reported by Economic Times, will result in 3.3 crore shares returning to the company’s pool, a move that is expected to have significant implications for the company’s future.
The news of Goyal’s decision to relinquish his ESOPs has sent shockwaves through the business community, with many analysts and experts trying to make sense of this unexpected move. According to Akshant Goyal, the company’s CFO, this decision will have a positive impact on the company’s ESOP pool. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” he said, indicating that the company’s ESOP pool will be replenished, reducing the need for further dilution in the near future.
For those who may be unfamiliar with the concept of ESOPs, they are a type of employee benefit plan that allows employees to own a portion of the company’s shares. ESOPs are typically used as a retention tool, incentivizing employees to stay with the company for a longer period. In Goyal’s case, his ESOPs were a significant portion of his compensation package, and giving them up will undoubtedly have a substantial impact on his personal wealth.
So, why would Goyal decide to give up such a large amount of money? The answer lies in the company’s future plans and strategies. As Zomato continues to grow and expand its operations, the company needs to ensure that it has a robust ESOP pool to attract and retain top talent. By giving up his unvested ESOPs, Goyal is essentially putting the company’s interests ahead of his own personal gain. This selfless act demonstrates his commitment to the company’s success and his willingness to make sacrifices for the greater good.
The implications of this decision are far-reaching and will likely have a significant impact on the company’s future. With 3.3 crore shares returning to the company’s pool, Zomato will have a larger pool of shares to allocate to its employees, reducing the need for further dilution. This, in turn, will help to maintain the company’s valuation and prevent any potential dilution of shareholder value.
Furthermore, Goyal’s decision to step down as CEO and give up his ESOPs may also signal a new era for Zomato. As the company continues to evolve and grow, it may be looking to bring in new leadership and fresh perspectives to take the company to the next level. Goyal’s decision to relinquish his ESOPs may be a strategic move to pave the way for new talent and leadership, ensuring that the company remains competitive and innovative in the rapidly changing food delivery and restaurant space.
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 Zomato and its stakeholders. While the exact reasons behind this decision are not entirely clear, it is evident that Goyal is putting the company’s interests ahead of his own personal gain. As the company continues to navigate the complexities of the food delivery and restaurant space, it will be interesting to see how this decision plays out and what the future holds for Zomato.
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