Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a significant development, billionaire Deepinder Goyal, the founder and CEO of Zomato’s parent company Eternal, has decided to step down as the CEO, and in the process, will give up unvested ESOPs (Employee Stock Ownership Plans) worth around ₹1,000 crore. This move is expected to have a significant impact on the company’s ESOP pool, with 3.3 crore shares set to return to the company.
According to a report by Economic Times, Goyal’s decision to give up his unvested ESOPs is a result of his transition out of the CEO role. The report states that the 3.3 crore shares that will return to the company’s pool will provide a significant boost to the company’s ESOP reserves. This, in turn, will reduce the need for the company to dilute its ESOPs in the near future.
The company’s CFO, Akshant Goyal, has welcomed this development, stating that “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This suggests that the company will have a more stable ESOP pool, which will help in attracting and retaining top talent.
The decision by Goyal to give up his ESOPs is seen as a significant move, given the value of the shares involved. ₹1,000 crore is a substantial amount, and it reflects the value that Goyal has created for the company during his tenure as CEO. It also reflects the confidence that Goyal has in the company’s future prospects, and his willingness to prioritize the company’s interests over his personal gains.
The development is also significant because it highlights the importance of ESOPs in the startup ecosystem. ESOPs are a key tool used by startups to attract and retain top talent, and they provide a significant incentive for employees to work towards the company’s growth and success. By giving up his ESOPs, Goyal is setting an example for other founders and CEOs to follow, and it demonstrates his commitment to the company’s long-term success.
The news of Goyal’s decision to step down as CEO and give up his ESOPs has sent shockwaves through the startup ecosystem. Many are seeing this as a significant development, and it has sparked a debate about the role of founders and CEOs in startups. Some are praising Goyal’s decision, stating that it shows his commitment to the company’s success, while others are questioning the implications of such a move.
Regardless of the debate, one thing is clear – Goyal’s decision to give up his ESOPs will have a significant impact on the company’s future prospects. With a more stable ESOP pool, the company will be better equipped to attract and retain top talent, and it will be able to focus on its growth and expansion plans without the burden of ESOP dilution.
In conclusion, the news of Deepinder Goyal giving up his ₹1,000-crore ESOPs as he steps down as CEO of Eternal is a significant development that will have far-reaching implications for the company and the startup ecosystem as a whole. It reflects the value that Goyal has created for the company, and it demonstrates his commitment to the company’s long-term success.
As the company moves forward under new leadership, it will be interesting to see how this development plays out. One thing is certain, however – Goyal’s decision to give up his ESOPs will be seen as a landmark moment in the history of the company, and it will be remembered as a testament to his dedication and commitment to the company’s success.
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