Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a shocking move, 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 around ₹1,000 crore as he steps down from his position as CEO. This news was reported by the Economic Times, which stated that the decision will result in 3.3 crore shares returning to the company’s pool.
The move is significant, not only because of the massive value of the ESOPs being surrendered but also because of the potential implications it may have on the company’s future plans. According to Akshant Goyal, the company’s CFO, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This suggests that the company may have been planning to issue new ESOPs to its employees, but with Goyal’s decision, they may be able to delay or avoid this step for the time being.
The decision by Goyal to give up his ESOPs is seen as a surprise move, given the significant value of the shares involved. ESOPs are a common benefit offered by companies to their employees, particularly those in leadership positions, as a way to incentivize them to perform well and contribute to the company’s growth. In Goyal’s case, his ESOPs were likely a significant portion of his overall compensation package, and giving them up will undoubtedly result in a substantial personal financial loss.
However, it’s worth noting that Goyal’s decision may not be entirely altruistic. As the founder and CEO of Eternal, he has a significant stake in the company’s success and may be looking to ensure a smooth transition of leadership. By giving up his ESOPs, he may be able to avoid any potential conflicts of interest or perceived self-dealing that could arise from his continued ownership of such a large number of shares.
The news of Goyal’s decision has sent shockwaves through the business community, with many analysts and observers trying to make sense of the move. Some have speculated that Goyal may be planning to pursue other ventures or opportunities, while others believe that he may be trying to send a signal to the market about the company’s commitment to its employees and its future growth plans.
Regardless of the motivations behind Goyal’s decision, one thing is clear: the move will have significant implications for Eternal and its stakeholders. The return of 3.3 crore shares to the company’s pool will likely have a positive impact on the company’s stock price, as it will reduce the number of outstanding shares and increase the value of each remaining share.
In addition, the decision may also have implications for the company’s future leadership and strategy. With Goyal stepping down as CEO, the company will need to find a suitable replacement, and the new leader will face significant challenges in navigating the company’s growth and expansion plans. The fact that Goyal is giving up his ESOPs may suggest that he is confident in the company’s ability to continue growing and thriving under new leadership.
As the news of Goyal’s decision continues to unfold, one thing is certain: the move will be closely watched by investors, analysts, and industry observers. The implications of the decision will be far-reaching, and it will be interesting to see how the company navigates this significant change in leadership and ownership structure.
In conclusion, the news that Deepinder Goyal is giving up his ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development that will have far-reaching implications for the company and its stakeholders. While the motivations behind Goyal’s decision may be complex and multifaceted, one thing is clear: the move will have a significant impact on the company’s future growth and success.
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