MUMBAI: Punit Goenka, MD and CEO of Zee Entertainment Enterprises, has resigned from his position as MD but will continue as CEO of the company.
The decision comes just 10 days ahead of the shareholders' meeting where he was due to seek approval for another five-year term as MD and CEO, starting from January 1, 2025 to Dec 31, 2029.
According to Zee, Goenka will stay on the board, pending shareholders' approval of his appointment as an executive director at the annual general meeting on November 28. The appointment falls under ordinary resolution, requiring more votes cast in favour than against.
Goenka and his family own just 4% of Zee, a company founded by his father Subhash Chandra in 1992. Public shareholders hold the remaining 96%, with LIC holding the largest stake of about 5% and FPI Government Pension Fund Global owning around 4%. Mutual funds - HDFC and ICICI Prudential - hold 3.71% and 3% respectively as of September 30. If Goenka does not receive majority shareholder approval, he will not be able to remain on the board, where he was initially appointed on January 1, 2005, according to BSE data.
Legal experts say though the CEO is a key management personnel, shareholder approval is not required to continue as one. However, to continue on the board as an executive director, shareholder approval is required, with Goenka's previous responsibilities as an MD now being diluted. In a regulatory filing, Zee said Goenka has resigned from the MD's position on Monday to "entirely focus on his operational responsibilities". He has been appointed as CEO of the company, adding that the variable portion of his salary (40%) will be paid to him only on achievement of certain milestones, subject to a maximum cap as defined by the board.
In April, Goenka had said that he would take a 20% cut in his remuneration. In FY23, Goenka's remuneration was Rs 35 crore, including Rs 21 crore in salary and allowances, Rs 9 crore in variable pay and Rs 5 crore as a one-time payment. Zee further said that it has promoted CFO Mukund Galgali as deputy CEO of the company.
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Reeba Zachariah is assistant corporate editor at The Times of Ind...
Read MoreReeba Zachariah is assistant corporate editor at The Times of India, Mumbai. She has been covering large Indian business houses such as the Tata Group. She also reports on a host of sectors like hospitality, retail, travel, liquor and consumer durables. She has been writing on mergers and acquisitions and private equity.
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