| Highlights Ceo of Zomato, Deepinder Gotal waives his salary till FY26Salary waiver extended beyond the original 36-month period. Worth over Rs 10,000 Crore, Deepinder is the holder of a 4.18% stake in the company. |
The annual compensation of Rs 3.5 crore paid to Deepinder Goyal, the Chief Executive of food delivery major Zomato, shall be eschewed through the remainder of the FY26, or financial year 2026. This decision has extended a previous commitment by two more years, as revealed in the company’s Qualified Institutional Placement (QIP) documents.
According to the company’s qualified institutional placement (QIP) documents, it has been stated that “Deepinder Goyal’s salary has been voluntarily waived for a period starting from April 1, 2021, till March 31, 2026. His roles and duties as the managing director and chief executive officer will continue to be discharged by him during this period”.
Details of the Discussion
Goyal’s salary was waived for 36 months from April 2021, which would cover the period up to March 2024. However, the latest decision is that he will not get any salary till March 31, 2026. The offer documents of the company revealed that Goyal formally communicated his decision to the board by way of letters dated March 24, 2021, and April 1, 2024.
Though Goyal’s salary is waived, he will still remain with Zomato as an MD and CEO. Hitherto, he enjoys all the responsibilities in these three roles. Variable pay during this period is entitled to him, but the amount will be determined by the board at a later stage.
Financial Stake
Goyal’s decision comes as a significant shareholder in the company. A 4.18% stake in Zomato is owned by him, which is currently valued at over Rs 10,000 crore, based on the company’s closing share price on November 25. Zomato’s stocks have had an impressive upsurge in 2023 with a year-to-date rise of more than 140%. The equity of the company was trading at Rs 279.84 on the Bombay Stock Exchange (BSE) as of November 26.
Zomato’s Market Performance
A market capitalization of Rs 2,45,243 crore (approximately $28.8 billion) was achieved by Zomato as of November 26. On the other hand, Swiggy, its competing company, was recently included in the stock market and has a market value of Rs 99,845 crore (approximately $11.8 billion). Shares of Zomato surged by up to 6% in early trade on November 25, supported by two major developments. First, Zomato was the first new-age technology company that was added to the 30-stock Sensex, the benchmark stock market index of India. Second, it received approval for its Qualified Institutional Placement (QIP) worth Rs 8,500 crore ($1 billion).