Goenka will remain on the board as a Director, pending shareholder approval, the statement said, adding that the board has approved his request, citing the need for dedicated focus on ZEEL’s operational growth strategy.
This decision precedes a significant shareholder vote scheduled for November 28 regarding Goenka’s reappointment as MD and CEO for a new five-year term commencing in January 2025.
In line with this transition, Mukund Galgali, the current Chief Financial Officer (CFO), has been promoted to Deputy CEO while retaining his CFO duties. These changes take effect immediately, reflecting the company’s aim to streamline its leadership structure and sharpen its focus on core business operations.
Goenka’s decision is aimed at enhancing profitability and improving operational efficiency, consistent with ZEEL’s broader objectives of revenue growth and stronger financial performance. The board expressed confidence in his leadership, linking his remuneration to higher performance metrics.
The board has set ambitious performance metrics for Goenka’s variable pay, with 40% tied to these enhanced targets. Should Goenka exceed the targets by over 100%, he may receive additional variable compensation, subject to a cap.The board underscored its focus on accountability, stating it will closely monitor his performance against these benchmarks to ensure value creation for shareholders.In a regulatory filing on November 15, the ZEEL board announced revised performance targets for Goenka’s reappointment. These include quarterly consolidated revenue and EBITDA goals for the next four quarters, starting from Q3 of FY25. Additionally, the board has committed to distributing 25% of consolidated net profits as dividends to shareholders.
Commenting on his decision, Punit Goenka said, “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 CEO. I am grateful to the Board for recognising my efforts and supporting me in this approach.”
R Gopalan, chairman of ZEEL, expressed support for Goenka’s move, stating, “The Board appreciates the approach taken by Punit Goenka to sharpen his focus towards enhancing the operational aspects of the company as the CEO. 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.”
