Puneet Goenka Cedes as ZEE MD

Puneet Goenka’s Resignation Hikes Share Prices

• He also withdrawn himself from reappointment for the post in the coming AGM.
• Moreover, the ZEEL board recently made changes to Goenka's performance targets as part of the terms of his reappointment.
• The Bank has mobilised deposits of ₹1,35,202 crore and its total advances stand at ₹1,24,721 crore as of March 31, 2024.
• In a regulatory filing, the company stated, "The Board has accepted the resignation of Punit Goenka as Managing Director of the company and appointed him as CEO." This move is aimed at allowing Goenka to focus exclusively on the operational responsibilities assigned by the board.
• Goenka's resignation as MD was effective from close of the business hours on November 18, and he was appointed as CEO the same day.
• ZEE said: "With this step, he intends to dedicate his time entirely towards the future of the Company by enhancing its performance and profitability levels in line with the direction given by the Board/Nomination and Remuneration Committee in its meeting dated 15th November 2024." The Board said it remains confident in Goenka's abilities to drive a higher growth trajectory for the company and achieve targets.
• On October 18, ZEEL declared its September quarter result, reporting a jump of 70.24 percent in its consolidated net profit to Rs 209.4 crore.
• In April,Goenka said his remuneration would be cut by 20%, in line with his goal of driving frugality, optimisation and a sharp focus on quality content.
• In FY23 Goenka received a remuneration of ₹35 crore, including ₹21 crore in salary and allowances,INR 9 crore in variable pay,INR 5-crore one-time payment, and a provident fund contribution of INR 0.2 lakh, according to the company’s annual report. His remuneration was INR 41.1 crore in FY22 and INR 13.2 crore in FY21.

Why Did the MD Demit?

• The decision comes after the board approved enhanced performance targets for Goenka, including quarterly consolidated revenue and EBITDA goals for the next four quarters starting October, as well as a commitment to distribute 25 per cent of consolidated net profits as dividends. Goenka’s performance will be evaluated against these metrics, with 40 per cent of his salary variable and contingent upon meeting the targets, subject to a board-defined cap.
• This leadership shift follows significant developments for Zee, including the collapse of the Zee-Sony merger earlier this year under Goenka’s tenure. In April, Goenka voluntarily took a 20 per cent pay cut. Meanwhile, the Securities and Exchange Board of India (Sebi) continues its scrutiny over allegations of fund diversion, although Goenka secured interim relief from the Securities Appellate Tribunal.
• Additionally, Zee’s Chief Financial Officer Mukund Galgali will now take on the role of Deputy CEO, leveraging his 17 years of experience with the company. The board has also recommended strengthening the management team by appointing a Deputy CEO.

Who steps into the Ex-MD’s Shoes?

• The board also approved the appointment of Saurav Adhikari as an additional non-executive director with effect from 15 November, Zee said in the filing, subject to the approval of the members of the company.
• Adhikari is a business leader with four decades of expertise in global businesses and markets across technology, FMCG, and consumer durables sectors as an operations, general management and investment specialist. In more than two decades in the technology sector with HCL, he held multiple leadership roles as the founding president of its startup enterprise networking firm, president of HCL’s IT-enabled services North American business, and president of global corporate strategy.
• His prior experience also includes several senior global leadership and executive roles across Unilever, vice president at PepsiCo, and CEO of the India business at Groupe SEB. He is currently founder and senior partner at Indus Tech Edge Fund I, a growth fund focused on globalising India’s technology ecosystem.

EDITOR’NOTE

• Goenka and his family hold only 4% of Zee, the company started by his father Subhash Chandra in 1992. According to BSE data, if Goenka does not gain majority shareholder approval, he will be unable to continue serving on the board, where he was first appointed on January 1, 2005.