Zomato's ESOP Costs in the Second Half of FY23
Recipient | ESOP Costs (in Rs crore) |
---|---|
Deepinder Goyal (CEO) | 143 |
Other Employees (excluding KMPs) | Remaining 32.5% |
According to a related party transaction filing by Zomato on the exchanges, ESOPs given to Deepinder Goyal, co-founder and CEO of Zomato, cost the company Rs 143 crore in the second half of FY23. This is equivalent to 67.5% of the company's total ESOP costs during the period.
The remaining 32.5% of the company's ESOP costs were incurred for ESOPs granted to other employees, excluding key managerial personnel (KMPs). KMPs are employees who hold senior positions in a company and are considered to have significant influence over its affairs.
The high cost of ESOPs granted to Deepinder Goyal is likely due to the fact that he is a key shareholder and promoter of Zomato. ESOPs are a form of compensation that allows employees to purchase shares in the company at a discounted price. They are often used as a way to attract and retain top talent.
The high cost of ESOPs can be a burden on companies, especially if they are not profitable. In Zomato's case, the company has yet to turn a profit. However, the company is hoping that its investment in ESOs will pay off in the long run by helping to attract and retain top talent.
The high cost of ESOPs granted to Deepinder Goyal is likely due to his role as a key shareholder and promoter of Zomato. ESOPs are used to attract and retain top talent, but they can be a burden on companies, especially if they are not yet profitable. Zomato is hoping that its investment in ESOPs will pay off in the long run.