MUMBAI: He wants to get down to the brass tacks of business., roll up his sleeves and go about achieving the targets the Zee Entertainment Enterprises Ltd (Zeel) board/nomination remunerations committee has set him and rev up the company’s revenue and profits. Zeel CEO & MD Punit Goenka has resigned from the post of managing director while retaining his position as CEO. Earlier Punit had sought permission from the Zeel board to resign as MD and continue as CEO which it accepted, effective 18 November.
The company has also agreed to additionally designate Zeel chief financial officer Mukund Galgali as the deputy CEO. Galgali has been with the Zee group for the past 17 years, but has 27 years of work experience, and will support Punit in driving the company’s strategic initiatives. As a member of the leadership team, he has been providing strategic consulting advice on business planning and performance, regulatory and ta implications on business, process innovations and management controls etc. to improve business efficiency and value creation for shareholders.
The Zeel board has recommended that a deputy chief financial officer be appointed to further strengthen the management team. Further, it is continuing the review of the company’s HR policies, processes and salary structures which were changed during the merger.
It may be recalled that the Zeel board raised the targets set for Punit while reappointing him as the MD & CEO. Late last week, the board had also put him under close watch, saying they would be evaluating his performance in terms of quarterly consolidated revenues and EBITDA over the next four quarters commencing Q3FY25) and pay out of 25 per cent of consolidated net profits as dividend to Zeel’s shareholders.
In a statement issued on Monday, Punit said that Zeel 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 recognizing my efforts and supporting me in this approach,” he added.
As part of the changes, the variable portion (40 per cent) of Punit's salary will be paid only on achievement of certain milestones, subject to a maximum cap as defined by the Zeel board.
Zeel chairman R. Gopalan stated,“The board appreciates the approach taken by 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. On behalf of the board, I wish him immense luck and success going forward.”
