Days after Board's target, Punit Goenka steps down as MD to focus on CEO role

New Delhi: Punit Goenka, CEO of Zee Entertainment Enterprises, has requested the Board of Directors to allow him to step down as Managing Director to focus entirely on his operational responsibilities as CEO. 

This decision aims to enable Goenka to drive the company’s performance and profitability in line with targets set by the Board and the Nomination and Remuneration Committee.  

The Board has enhanced performance metrics for Goenka’s role, linking 40% of his variable pay to achieving ambitious targets, with additional incentives for exceeding them.

In its meeting held on Friday, November 15, 2024, the board of ZEEL "considered and approved higher targets to evaluate the performance of Punit Goenka, which includes Quarterly Consolidated Revenue Outlook for the next 4 quarters (commencing Q3FY25), Quarterly Consolidated EBITDA Outlook for next 4 quarters (commencing Q3FY25) and a payout of 25% of consolidated net profits as a dividend to the shareholders of the company." 

As part of its leadership restructuring, the board has elevated Mukund Galgali to Deputy CEO, alongside his responsibilities as CFO. The company will also appoint a Deputy CFO to strengthen the financial management team.  

Supporting the step taken by Goenka, R Gopalan, Chairman, ZEE stated, “The Board appreciates the approach taken by Goenka to sharpen his focus towards enhancing the operational aspects of the company as the Chief Executive Officer. His expertise and business acumen remain unmatched, and we remain confident in his abilities to deliver immense value to the company and all its stakeholders in the position he assumes. On behalf of the Board, I wish him immense luck and success going forward.” 

Goenka said, “The company remains on firm footing and is taking all the necessary steps to build a robust foundation for its future. In order to ensure we maintain a sharp focus on achieving our targeted aspirations, the core businesses require dedicated time and energy, which can only be achieved in an operational capacity. In the long-term interest of the company and all its stakeholders, I have approached the board with a request to attain operational focus as the Chief Executive Officer. I am grateful to the Board for recognising my efforts and supporting me in this approach.”

The Board will periodically review Goenka’s progress, tracking key performance indicators, including revenue, EBITDA, and shareholder dividends, to ensure sustained growth for Zee Entertainment Enterprises. 

The AGM of ZEEL is scheduled to be held on November 28 through video conference in accordance with the relevant circulars issued by the Ministry of Corporate Affairs and SEBI.

On October 18, ZEEL declared its September quarter result, reporting a jump of 70.24% in its consolidated net profit to Rs 209.4 crore.

However, its total income declined 18.93% to Rs 2,034.4 crore during the quarter under review.