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’s 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 decision is expected to have significant implications for the company, its employees, and its future growth prospects.
According to a report by the Economic Times, Goyal’s decision to relinquish his ESOPs will result in the return of 3.3 crore shares to the company’s pool. This move is seen as a strategic one, as it will help the company to conserve its equity and reduce the need for further dilution of ESOPs in the future. As the company’s CFO, Akshant Goyal, stated, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.”
The decision by Goyal to give up his ESOPs is a significant one, as it reflects his commitment to the company’s long-term growth and success. By relinquishing his claim to these shares, Goyal is essentially putting the interests of the company and its employees ahead of his own personal interests. This move is likely to be seen as a positive development by investors and stakeholders, as it demonstrates Goyal’s willingness to make sacrifices for the benefit of the company.
The ESOPs that Goyal is giving up are part of the company’s employee stock option plan, which is designed to incentivize employees and reward them for their hard work and contributions to the company’s growth. By returning these shares to the company’s pool, Goyal is effectively increasing the amount of equity available for distribution to other employees. This move is likely to be welcomed by employees, as it will provide them with greater opportunities to participate in the company’s growth and success.
The implications of Goyal’s decision to give up his ESOPs are far-reaching. For one, it will help to conserve the company’s equity and reduce the need for further dilution of ESOPs in the future. This will help to maintain the company’s stock price and prevent unnecessary dilution of shareholder value. Additionally, the move is likely to be seen as a positive development by investors, as it demonstrates the company’s commitment to responsible governance and strategic decision-making.
Goyal’s decision to step down as CEO of Eternal is also significant, as it marks a new chapter in the company’s history. As the founder and CEO of Zomato, Goyal has been instrumental in shaping the company’s growth and success. Under his leadership, Zomato has become one of the leading food delivery companies in India, with a strong presence in multiple markets around the world.
As Goyal hands over the reins to a new CEO, the company is expected to continue its growth trajectory, driven by its strong brand, innovative products, and commitment to customer satisfaction. The company’s focus on technology, sustainability, and social responsibility is also expected to continue, as it strives to make a positive impact on the communities it serves.
In conclusion, Deepinder Goyal’s decision to give up his ₹1,000-crore ESOPs as he steps down as CEO of Eternal is a significant development that reflects his commitment to the company’s long-term growth and success. By relinquishing his claim to these shares, Goyal is putting the interests of the company and its employees ahead of his own personal interests, and demonstrating his willingness to make sacrifices for the benefit of the company. As the company moves forward under new leadership, it is expected to continue its growth trajectory, driven by its strong brand, innovative products, and commitment to customer satisfaction.
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