Deepinder Goyal donates Esops worth Rs 700 crore to 'Future Foundation'
Zomato CEO Deepinder Goyal announced on Friday that he will donate all proceeds from the employee stock ownership plan (Esops) he received from investors and the board of directors to the Zomato Future Foundation (ZFF).
At the average share price over the last month, these Esops are worth aroud $90 million (Rs 700 crore), he said in a note.
On Friday, the Zomato scrip hit a 52-week low of Rs 57.65. The stock is down 62% from its all-time high levels that it hit in November last year.
The Future Foundation will cover the education of up to two children of all Zomato delivery partners. This will be up to Rs 50,000 per child per annum on actuals (above a certain service quality benchmark) who have been on Zomato's fleet for more than five years. If the delivery partner stays with the company for ten years, the price will increase to Rs 1,00,000 per child each year.
It will also provide higher education scholarships over and above these limits for children with higher performance and potential.
The Foundation will also assist families of its delivery partners (regardless of service term) with educational and livelihood support if they are involved in terrible circumstances such as accidents while on the job.
"To reap the most benefit for ZFF, and protect the interests of our shareholders, I do not intend to liquidate all these shares immediately, but over the next few years. For the first year, I will liquidate less than 10% of these Esops towards this fund," Goyal said.
Goyal further stated that the Future Foundation will accept donations from other Zomato employees and will look at other fundraising avenues. It also plans to set up an independent governance board for the Foundation.