New Delhi, Nov 18 (PTI) Punit Goenka has resigned as the Managing Director of Zee Entertainment and has been appointed as CEO to have his focus entirely on operational responsibilities assigned to him by the board of the company.
The board has "accepted the resignation of Punit Goenka as Managing Director of the Company and appointed him as CEO," said Zee Entertainment in a regulatory update.
Mukund Galgali, Chief Financial Officer of Zee Entertainment, will assume the role of Deputy Chief Executive Officer of the Company, it added.
Goenka's resignation as MD was effective from close of the business hours on November 18, and he was appointed as CEO the same day.
The change would be like the existing full-time employment for Goenka, however the variable portion of his salary (40 per cent) will be paid to him only on achievement of certain milestones, subject to a maximum cap as defined by the Board, according to the statement.
ZEE said: "With this step, he intends to dedicate his time entirely towards the future of the Company by enhancing its performance and profitability levels in line with the direction given by the Board/Nomination and Remuneration Committee in its meeting dated 15th November 2024."
The Board said it remains confident in Goenka's abilities to drive a higher growth trajectory for the company and achieve 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 CEO," the statement read, quoting Punit Goenka, the son of media baron Subhash Chandra.
On October 18, the board of ZEEL approved the proposal for Goenka's reappointment for a five-year term, which will be effective from January 1, 2025, to December 31, 2029.
However, Goenka's re-appointment was subject to approval from the shareholders in the coming Annual General Meeting of Zee Entertainment, which is scheduled to be held on November 28.
Last week, the company board enhanced the performance targets for its MD and CEO Punit Goenka for his re-appointment, according to a regulatory filing by the company.
In its meeting held on Friday, the board of ZEEL "considered and approved higher targets to evaluate the performance of Punit Goenka which includes Quarterly Consolidated Revenue Outlook for next 4 quarters (commencing Q3FY25), Quarterly Consolidated EBITDA Outlook for next 4 quarters (commencing Q3FY25) and payout of 25% of consolidated net profits as dividend to the shareholders of the Company."
Now the board will track Goenka's performance based on the new targets, it said.
On October 18, ZEEL declared its September quarter result, reporting a jump of 70.24 per cent in its consolidated net profit to Rs 209.4 crore.
However, its total income declined 18.93 per cent to Rs 2,034.4 crore during the quarter under review.
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