Zomato CEO Deepinder Goyal has decided to extend the voluntary waiver of his annual remuneration of Rs 3.5 crore till the end of the financial year 2026 (FY26).
At the start of FY21, Goyal announced his decision to forgo his salary for a period of 36 months until the end of FY24. However, the recent move to extend this waiver means that he will not be drawing any salary until March 31, 2026.
According to the company's qualified institutional placement (QIP) documents, Goyal formally communicated his decision to the board through letters dated March 24, 2021, and April 1, 2024.
The board, in turn, acknowledged and approved his voluntary waiver of salary for the period spanning from April 1, 2021, to March 31, 2026. Despite not receiving a fixed salary, Goyal will continue to fulfill his responsibilities as the Managing Director and CEO of Zomato.
While Goyal has waived his fixed salary, he remains eligible for variable pay based on performance metrics to be determined by the board at a later date. This ensures that his compensation is aligned with the company's overall success and growth trajectory.
Why did Deepinder Goyal extend waiver of his own salary?
Goyal's decision comes at a time when Zomato's market performance has been impressive, with its stock value rising by over 140 percent on a year-to-date basis. As of November 26, Zomato's market capitalization stood at Rs 2,45,243 crore, indicating its strong position in the competitive food aggregation industry.
The company's recent inclusion in the 30-stock Sensex index and approval for an Rs 8,500 crore QIP prove its growth potential and market recognition.
To uphold its market position and fend off competition, Zomato has secured shareholders' approval to raise $1 billion through the QIP. This capital infusion will enable the company to invest in strategic initiatives such as marketing and expanding its quick commerce arm, Blinkit.
With a cash chest of around Rs 19,300 crore post-fundraising, Zomato is well-positioned to drive innovation and capture market share in the food delivery landscape. [Source: MoneyControl]
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