Zee announces leadership restructuring; Punit Goenka takes strategic step
Mumbai: Punit Goenka, CEO of Zee Entertainment Enterprises, has requested the Board of Directors to allow him to step down as Managing Director to dedicate his focus solely to operational responsibilities as CEO. This decision is aimed at driving the company’s performance and profitability in alignment with targets set by the Board and the Nomination and Remuneration Committee.
The Board has approved enhanced performance metrics for Goenka, tying 40% of his variable pay to ambitious quarterly targets, with additional incentives for exceeding them. Key metrics include quarterly consolidated revenue and EBITDA outlooks for the next four quarters (starting Q3 FY25) and a commitment to distribute 25% of consolidated net profits as dividends to shareholders.
In its November 15, 2024, meeting, the Zee Board also elevated Mukund Galgali to Deputy CEO, alongside his role as CFO. Additionally, the company plans to appoint a Deputy CFO to strengthen its financial management team further.
Chairman R Gopalan commended Goenka’s decision: “The Board appreciates Goenka’s approach to sharpening his focus on enhancing the company’s operational aspects as CEO. His unmatched expertise and acumen give us confidence in his ability to deliver immense value to stakeholders. We wish him continued success in his role.”
Goenka expressed gratitude for the Board’s support, saying, “To maintain focus on achieving our ambitious targets, the core business requires dedicated time and energy, which can only be accomplished in an operational capacity. I am grateful to the Board for recognizing my efforts and supporting this approach to drive long-term value for the company and its stakeholders.”
The Board will regularly review Goenka’s progress on key performance indicators, including revenue, EBITDA, and shareholder dividends, to ensure sustained growth for Zee Entertainment Enterprises.
Zee’s AGM is scheduled for November 28 via video conference, adhering to Ministry of Corporate Affairs and SEBI guidelines.
In its Q2 results declared on October 18, Zee reported a 70.24% surge in consolidated net profit to ₹209.4 crore, despite an 18.93% decline in total income to ₹2,034.4 crore during the quarter.