Zomato CEO Deepinder Goyal to donates Esops valued INR 700 crore to Future Foundation
- ByStartupStory | May 7, 2022
Deepinder Goyal, the co-founder, and CEO of Zomato, announced his decision to donate all his stock options vesting this year, worth around Rs 700 crore, towards educating the children of his company’s delivery partners.
In an internal note, which is being widely circulated, Goyal said he would donate all his ESOPs proceeds this year, net of taxes, to Zomato Future Foundation to cover the education of up to 2 children of all Zomato delivery partners who have been on its fleet for over five years.
To begin with, it will cover expenses up to INR 50,000 per child per annum on actuals, which could rise to INR 100,000 if the delivery partner completes ten years with Zomato. The tenure thresholds will, however, be lower for women.
“I believe that education is the one and the only thing that can give them (the children of delivery partners) a chance to build a life much better than their previous generations,” said Goyal.
According to the company’s statement in August 2022, Zomato had 310,000 active delivery partners in July of 2021, the highest-ever number in the platform’s lifetime.The condition and safety of the delivery people became a much-heated debate topic when Zomato announced 10-minute deliveries and also recently when one of its delivery persons died in a road accident.
Goyal was granted ESOPS by Zomato’s investors and board based on his performance right before the company went in 2021. To reap the most benefit for the foundation and protect the interest of Zomato’s shareholders, Goyal, however, will not be liquidating all these shares immediately “but over the next few years.” For the first year, he will liquidate less than 10% of these ESOPs towards the Zomato Future Foundation.
According to the draft red herring proposal document, dated July 6, 2021, the number of options granted to Deepinder Goyal for the period April 01, 2021, to the date of Red Herring Prospectus is 368,500,000. For each option exercised, one equity share will be allotted
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