Deepinder Goyal to give up ₹1,000-crore Eternal ESOPs as he steps down as CEO: Report
In a surprise move, billionaire Deepinder Goyal, the founder and CEO of Zomato’s parent company 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 Employee Stock Ownership Plans (ESOPs) worth around ₹1,000 crore. This significant decision has far-reaching implications for the company and its stakeholders.
According to a report by Economic Times, Goyal’s decision to give up his ESOPs means that 3.3 crore shares will return to the company’s pool. This move is expected to have a positive impact on the company’s finances, as it will reduce the need for further dilution of ESOPs. Akshant Goyal, the company’s CFO, stated, “Because [of this]…we may not need to dilute our ESOPs again for slightly longer.” This suggests that the company will have more flexibility in terms of its equity distribution and will not have to issue new shares to employees, thereby maintaining the value of existing shares.
The decision by Goyal to step down as CEO and give up his ESOPs is a significant development in the history of Eternal. As the founder of the company, Goyal has been instrumental in shaping its growth and success. Under his leadership, Zomato has become one of the leading food delivery companies in India, with a presence in over 1,000 cities. The company’s success can be attributed to Goyal’s vision and strategic decision-making, which has enabled it to navigate the competitive food delivery market.
Goyal’s decision to give up his ESOPs is also a testament to his commitment to the company’s long-term success. By returning his unvested shares to the company’s pool, Goyal is ensuring that the company has a strong foundation for future growth. This move will also help to maintain the trust and confidence of investors, who will see this decision as a positive step towards the company’s financial stability.
The impact of Goyal’s decision will be felt across the company, with employees and investors alike benefiting from this move. With 3.3 crore shares returning to the company’s pool, employees will have access to more shares under the ESOP program, which will help to motivate and retain talent within the company. This, in turn, will drive innovation and growth, as employees will be more invested in the company’s success.
In addition to the benefits for employees, Goyal’s decision will also have a positive impact on investors. By reducing the need for further dilution of ESOPs, the company will be able to maintain a stable share price, which will be beneficial for investors who have invested in the company. This move will also help to increase investor confidence, as it demonstrates the company’s commitment to responsible financial management.
As Eternal looks to the future, Goyal’s decision to step down as CEO and give up his ESOPs marks a new chapter in the company’s history. With a strong foundation in place, the company is well-positioned for continued growth and success. The leadership transition will be closely watched by investors and industry analysts, who will be eager to see how the company navigates this change.
In conclusion, Deepinder Goyal’s decision to give up his ₹1,000-crore Eternal ESOPs as he steps down as CEO is a significant development in the history of the company. This move demonstrates Goyal’s commitment to the company’s long-term success and will have a positive impact on employees, investors, and the company’s finances. As Eternal looks to the future, it is clear that the company is in good hands, with a strong foundation in place and a talented team driving its growth and success.
About the Author
