Zomato CEO Deepinder Goyal forgoes salary for FY22; startup bears Rs 778.8 crore cost on top management

Deepinder Goyal, managing director and CEO at food delivery app Zomato, has voluntarily forgone his salary for the financial year that ended on March 31, 2022. 

Following the suite, the Chief Financial Officer (CFO) of the company—Akshant Goyal—has also waived off his salary w.e.f January 1, 2022 till March 31, 2022. 

The disclosures were made in stock exchange filing by the company on June 7. 

Zomato incurred a cost of Rs 386.9 crore for employee stock options (ESOPs) granted to CEO Deepinder in the second half of FY22, while CFO Akshant and Company Secretary (CS), Sandhya Sethia, had cost the company Rs 3 crore and Rs 30 lakh, respectively.  

The overall expenses for the three key managerial personnel (KMPs) on account of ESOPs as well as salary and other employee benefits amounted to Rs 778.8 crore in the second half of FY22.

The “volunteer” culture 

Deepinder, who had started Zomato in 2008, today holds a 5.5 percent stake in the company (In 2020, he held 7.7 percent stake which was diluted after the compnay raised significant amount of capital before going public).

The co-founder, who was appointed the MD of the company for five consecutive years – from March 24, 2021, to March 23, 2026, had taken a pay cut last financial year as well owing to the COVID-19 pandemic. His basic salary back then was Rs 3.5 crore per annum and had come down to Rs 1.96 crore in the financial year ended March 31, 2021. 

The CEO had announced that he will not be taking any money home for the next three years, as salary.

“Deepinder Goyal has voluntarily waived his remuneration for a period of 36 months starting from April 1, 2021 and shall continue to discharge his roles and duties as Managing Director and Chief Executive Officer during this period,” According to the DRHP filing,” according to the DRHP filing.

On the other hand, right before the startup went public on July 21, 2021, Deepinder was granted ESOPs worth Rs 700 crore by the investors/ board “basis of his past performance”. 

On May 6, 2022, Deepinder had announced that he will be donating all his ESOP proceeds worth Rs 700 crore to the Zomato Future Foundation (ZFF) to offer free education for delivery partners’ children and more. 

Zomato share price was Rs 65.95 as on June 8, 2022, 11:41 AM, up by 0.84 percent, on NSE.