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 announced that he will be stepping down as the CEO of the company. As a result, he will also be giving up his unvested Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This move is expected to have significant implications for the company, its employees, and its investors.
According to a report by 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 significant development, as it will help the company to conserve its equity and avoid diluting its ESOPs further. The company’s Chief Financial Officer, Akshant Goyal, has stated that “because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This suggests that the company will be able to maintain its current equity structure for a longer period, which could have a positive impact on its stock price and investor sentiment.
The decision by Goyal to give up his ESOPs is a significant one, and it reflects his commitment to the company’s long-term success. ESOPs are a common practice in the startup world, where employees are granted shares in the company as a form of compensation. These shares vest over a period of time, and employees can exercise them to buy shares in the company at a predetermined price. In Goyal’s case, his ESOPs were worth around ₹1,000 crore, which is a significant amount of money.
The fact that Goyal is giving up his ESOPs suggests that he is prioritizing the company’s interests over his own personal gain. This move is likely to be seen as a positive development by investors and employees, as it demonstrates Goyal’s commitment to the company’s success. It also suggests that Goyal is confident in the company’s ability to continue growing and succeeding without him at the helm.
The news of Goyal’s departure as CEO has sent shockwaves through the business world. Zomato has been one of the most successful startups in India, and Goyal has been instrumental in its growth and success. Under his leadership, the company has expanded rapidly, and it has become one of the leading food delivery companies in the country. Goyal’s vision and leadership have been key factors in the company’s success, and his departure will be felt by the company and its employees.
However, it’s worth noting that Goyal’s departure as CEO does not mean that he will be leaving the company entirely. He will continue to be involved with the company, although his exact role and responsibilities have not been announced. This suggests that Goyal will still be playing a significant role in the company’s decision-making process, even if he is no longer the CEO.
The implications of Goyal’s decision to give up his ESOPs are significant. For one, it means that the company will be able to conserve its equity and avoid diluting its ESOPs further. This could have a positive impact on the company’s stock price and investor sentiment, as it suggests that the company is committed to maintaining its current equity structure. It also suggests that the company is confident in its ability to continue growing and succeeding without Goyal at the helm.
In addition, Goyal’s decision to give up his ESOPs could have a positive impact on employee morale. ESOPs are a key component of employee compensation, and the fact that Goyal is giving up his ESOPs suggests that he is prioritizing the company’s interests over his own personal gain. This could lead to increased employee loyalty and motivation, as employees feel that the company is committed to their success and well-being.
In conclusion, the news that Deepinder Goyal will be giving up his ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development. It reflects Goyal’s commitment to the company’s long-term success, and it suggests that he is prioritizing the company’s interests over his own personal gain. The implications of this move are significant, and it will be interesting to see how the company performs in the coming months and years.
About the Author
