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 Eternal, has decided to step down as the CEO of the company. As part of this transition, Goyal will also be giving up his 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.
The news, reported by Economic Times, has sent shockwaves through the business community, with many analysts and investors trying to understand the implications of this development. According to the report, Goyal’s decision to give up his ESOPs is a result of his transition out of the CEO role, and is seen as a positive move for the company.
The ESOPs that Goyal will be giving up are part of the company’s equity incentive plan, which is designed to reward employees for their hard work and dedication. The plan allows employees to purchase company shares at a predetermined price, which can lead to significant gains if the company’s stock price increases. In this case, Goyal’s unvested ESOPs are worth around ₹1,000 crore, which is a significant amount by any standard.
The return of 3.3 crore shares to the company’s pool is expected to have a positive impact on the company’s ESOP plan. According to Akshant Goyal, the company’s CFO, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This means that the company may not need to issue new shares to employees as part of its ESOP plan, which can help to prevent dilution of existing shareholders’ stakes.
The decision by Deepinder Goyal to give up his ESOPs is seen as a sign of his commitment to the company and its employees. By returning his unvested ESOPs to the company, Goyal is ensuring that the company’s ESOP pool remains intact, and that employees will continue to benefit from the plan. This move is also expected to boost morale among employees, who will see the company’s founder and CEO putting the interests of the company and its employees ahead of his own personal interests.
The development is also seen as a positive sign for the company’s governance and leadership. The fact that Goyal is willing to give up his ESOPs as part of his transition out of the CEO role demonstrates his commitment to the company’s long-term success, and his willingness to put the interests of the company ahead of his own personal interests.
In recent years, Zomato has been one of the most successful and high-profile startups in India, with a valuation of over $10 billion. The company has expanded its operations to several countries, and has diversified its business to include food delivery, dining out, and other services. The company’s success has been driven by its strong leadership team, which has been led by Deepinder Goyal since its inception.
Goyal’s decision to step down as CEO and give up his ESOPs is expected to have a significant impact on the company’s leadership and governance. The company has not yet announced who will succeed Goyal as CEO, but it is expected that the new CEO will be announced soon. The company’s board of directors is expected to play a key role in selecting the new CEO, and in ensuring a smooth transition of power.
In conclusion, the news that Deepinder Goyal will give up his unvested ESOPs worth around ₹1,000 crore as he steps down as CEO of Zomato parent Eternal is a significant development that is expected to have a positive impact on the company. The return of 3.3 crore shares to the company’s pool is expected to boost the company’s ESOP plan, and demonstrate Goyal’s commitment to the company and its employees. As the company looks to the future, it is clear that Goyal’s legacy will continue to shape the company’s direction and success.
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