Punit Goenka Resigns As Zee Entertainment MD To Focus On CEO Role
Punit Goenka to focus entirely on his operational responsibilities as CEO to drive robust growth for the future
(The Corner Office Journal) -- Zee Entertainment Enterprises Ltd. said Punit Goenka relinquished his managing director position to focus entirely on his operational responsibilities as chief executive officer of the company.
Goenka’s resignation as managing director is effective from the close of business hours on 18 November, the Indian media and entertainment company said in a stock exchange announcement.
Zee said its board appointed Goenka as CEO with effect from 18 November. He agreed to stay on the board as a director, subject to shareholder approval, it added.
“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,” Goenka said, while explaining his move to focus on his responsibilities as CEO.
Higher Performance Targets
The development comes after the company’s board recently set higher targets to evaluate Goenka’s performance. The targets include a quarterly consolidated revenue and EBITDA outlook for the next four quarters, commencing 3QFY25, as well as a payout of 25% of consolidated net profit as dividend to the shareholders.
Zee, which will hold its annual general meeting on 28 November, said Goenka’s appointment as CEO is as per the existing full-time employment, but the variable portion of his salary (40%) will be paid to him only on achievement of certain milestones.
“If he achieves his targets more than 100%, he may get a higher variable pay, subject to a cap,” Zee said.
Mukund Galgali’s Elevation
The Mumbai-based Zee said its board also approved to designate Chief Financial Officer Mukund Galgali as deputy CEO of the company, effective 18 November. He will assume the new role in addition to his profile as CFO and would continue to report to Goenka, it added.
Galgali, a chartered accountant and a company secretary, has over 27 years of global financial and corporate leadership experience, including 17 years with Zee Group, according to the statement.
Zee said the board also advised the management to appoint a deputy CFO to further strengthen the management team.
In addition, the board is continuing the review of the company’s HR policies, processes and salary structures, which were changed during the merger integration process.
In August 2024, Zee and Sony Group’s Indian units reached a settlement to conclude all disputes related to their scrapped merger deal worth $10 billion. The settlement came after the companies mutually agreed to independently pursue future growth opportunities and focus on the evolving media & entertainment landscape.
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