Zomato CEO Deepinder Goyal forgoes Rs 3.5 crore salary till FY26

Despite waiving his salary, Goyal will continue to serve as Zomato's Managing Director (MD) and CEO, fulfilling all his responsibilities.

In Short

• Zomato CEO Deepinder Goyal waives salary till FY26
• Goyal's salary waiver extended from initial 36 months
• He holds 4.18% stake in Zomato, worth over Rs 10,000 crore

Deepinder Goyal, the CEO of food delivery platform Zomato, has decided to forgo his annual salary of Rs 3.5 crore until the end of the financial year 2026 (FY26). This decision extends a previous commitment by two more years, as revealed in the company’s Qualified Institutional Placement (QIP) documents.

DETAILS OF THE DECISION

Goyal initially waived his salary for 36 months starting April 2021, covering the period until March 2024. However, the recent decision means he will not draw any salary until March 31, 2026. According to the company’s offer documents, Goyal formally communicated his decision to the board through letters dated March 24, 2021, and April 1, 2024.

Despite waiving his salary, Goyal will continue to serve as Zomato’s Managing Director (MD) and CEO, fulfilling all his responsibilities. He is entitled to variable pay during this period, but the amount will be determined by the board at a later stage.

FINANCIAL STAKES

Goyal’s decision comes as he remains a significant shareholder in the company. He owns a 4.18% stake in Zomato, which is currently valued at over Rs 10,000 crore, based on the company’s closing share price on November 25.

Zomato’s stock has seen remarkable growth in 2023, with a year-to-date (YTD) increase of over 140%. As of November 26, the company’s shares were trading at Rs 279.84 on the Bombay Stock Exchange (BSE).

ZOMATO’S MARKET PERFORMANCE

Zomato has achieved a market capitalisation of Rs 2,45,243 crore (approximately $28.8 billion) as of November 26. In comparison, its rival Swiggy, which was recently listed, has a market capitalisation of Rs 99,845 crore (around $11.8 billion).

Shares of Zomato surged by up to 6% in early trade on November 25, supported by two major developments.

First, Zomato became the first new-age technology company to be included in the 30-stock Sensex, India’s benchmark stock market index. Second, the company received approval for its Rs 8,500 crore ($1 billion) Qualified Institutional Placement (QIP), boosting investor confidence.