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 parent company Eternal, is set to give up 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 a substantial impact on the company’s ESOP pool, with approximately 3.3 crore shares returning to the company.
According to a report by Economic Times, Goyal’s decision to relinquish his unvested ESOPs is a significant one, considering the substantial value of the shares involved. The report states that the returned shares will be added back to the company’s ESOP pool, which will provide a significant boost to the company’s ability to attract and retain top talent.
The development was confirmed by Akshant Goyal, the company’s Chief Financial Officer, who stated that the return of the unvested ESOPs will have a positive impact on the company’s ESOP dilution. “Because [of this]…we may not need to dilute our ESOPs again for slightly longer,” he said. This suggests that the company may not need to issue new ESOPs to employees in the near future, which could help to maintain the value of existing shares.
The news of Goyal’s decision to give up his ESOPs has sent shockwaves through the business community, with many analysts and experts weighing in on the potential implications of this move. Some have speculated that Goyal’s decision may be related to his plans to step down as CEO of Eternal, although the exact reasons behind his decision are not yet clear.
It is worth noting that Goyal’s decision to relinquish his ESOPs is not without precedent. In recent years, several high-profile CEOs and founders have given up their ESOPs or taken significant pay cuts in order to demonstrate their commitment to their companies and employees. However, the scale of Goyal’s decision is unprecedented, given the substantial value of the ESOPs involved.
The impact of Goyal’s decision on Eternal’s ESOP pool is expected to be significant. With approximately 3.3 crore shares returning to the company, the ESOP pool is likely to increase substantially, providing a significant boost to the company’s ability to attract and retain top talent. This could be particularly important for Eternal, which operates in a highly competitive industry where talent acquisition and retention are critical to success.
In addition to the impact on the ESOP pool, Goyal’s decision is also likely to have implications for the company’s governance and leadership structure. As the founder and CEO of Eternal, Goyal has played a critical role in shaping the company’s strategy and direction. His decision to step down as CEO and give up his ESOPs may signal a significant shift in the company’s leadership and governance structure, although the exact nature of this shift is not yet clear.
As the news of Goyal’s decision continues to unfold, it is likely that there will be significant interest and speculation about the potential implications of this move. However, one thing is clear: Goyal’s decision to give up his ESOPs is a significant development that is likely to have far-reaching consequences for Eternal and the broader business community.
In conclusion, the news that Deepinder Goyal is set to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development that is likely to have a substantial impact on the company’s ESOP pool and governance structure. As the situation continues to unfold, it will be important to watch for further updates and developments.
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