Punit Goenka approached the board of directors of ZEE Entertainment Enterprises Ltd (ZEEL) on Monday to relinquish his role as the managing director and focus on his operational responsibilities as the CEO. Goenka intends to enhance company performance and profitability levels as per the direction of the board/Nomination and Remuneration Committee in its November 15 meeting, said the company in a press release. This includes enhanced revenue, EBITDA and net profit targets.
“The company remains on a 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,” said Goenka.
Earlier, Goenka had formed a new, lateral team structure and worked to visit all language markets to understand the company’s consumers and their evolving preferences. Additionally, he was focused in enhancing the value proposition to advertisers by identifying newer monetization avenues in order to boost the advertising revenue ecosystem.
Regarding Goenka’s decision, R Gopalan, Chairman of ZEE stated, “The board appreciates the approach taken by Mr Punit 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. ”
While supporting Goenka’s decision, the board also specified higher performance metrics for his 40 per cent variable pay. If he achieves his targets more than 100 per cent, Goenka may get a higher variable pay, subject to a cap.
The board also promoted Mukund Galgali to the role of Deputy Chief Executive Officer of Zee. Galgali will assume this role in addition to being the company Chief Financial Officer and will continue to report to Goenka. The board advised the management to also appoint a Deputy Chief Financial Officer to further strengthen the management team. Further, the board is continuing the review of the company’s HR policies, processes and salary structures which were changed during the merger integration process.