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 a staggering ₹1,000 crore as he steps down from his position as CEO. This move is expected to have far-reaching implications for the company, its employees, and the Indian startup ecosystem as a whole.
According to a report by the Economic Times, Goyal’s decision to relinquish his unvested ESOPs means that approximately 3.3 crore shares will return to the company’s pool. This development is significant, as it will likely have a positive impact on the company’s finances and reduce the need for further dilution of ESOPs in the near future.
The company’s Chief Financial Officer, Akshant Goyal, has confirmed this development, stating, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This statement suggests that the return of these shares to the company’s pool will provide a buffer, allowing Eternal to manage its ESOPs more effectively and reduce the need for additional dilution.
For those unfamiliar with ESOPs, they are a type of employee benefit plan that allows employees to own a portion of the company’s stock. ESOPs are often used as a retention tool, incentivizing employees to stay with the company and work towards its long-term success. In the case of Eternal, the ESOPs have been a key component of the company’s compensation package, attracting and retaining top talent in the competitive Indian startup landscape.
The decision by Deepinder Goyal to give up his unvested ESOPs is a significant one, as it demonstrates his commitment to the company’s success and his willingness to make sacrifices for the greater good. As the founder and CEO of Eternal, Goyal has been instrumental in shaping the company’s vision and strategy, and his decision to relinquish his ESOPs is a testament to his leadership and dedication.
The implications of this development are far-reaching, and it will be interesting to see how it plays out in the coming months. One possible outcome is that the return of these shares to the company’s pool could lead to a reduction in the dilution of ESOPs, which could have a positive impact on the company’s stock price. Additionally, this move could also lead to a more efficient allocation of ESOPs, as the company will be able to manage its pool of shares more effectively.
Furthermore, this development could also have a positive impact on the Indian startup ecosystem as a whole. As one of the most successful and high-profile startups in India, Eternal’s decision to manage its ESOPs more effectively could set a precedent for other companies to follow. This could lead to a more sustainable and equitable allocation of ESOPs, which could have a positive impact on the overall health and stability of the ecosystem.
In conclusion, the decision by Deepinder Goyal to give up his unvested ESOPs is a significant development that is likely to have far-reaching implications for Eternal, its employees, and the Indian startup ecosystem. As the company continues to navigate the complexities of the food delivery and restaurant space, this move is a testament to Goyal’s leadership and commitment to the company’s success.
For more information on this development, please visit: https://www.timesnownews.com/business-economy/companies/why-deepinder-goyal-is-likely-to-walk-away-from-nearly-rs-1000-crore-esops-article-153490053/amp
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