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Punit Goenka, CEO of Zee Entertainment Enterprises, has stepped down as Managing Director, the company announced in a stock exchange filing on Monday. Despite his resignation from the MD role, Goenka will remain as CEO, focusing solely on operational responsibilities to drive the company's performance and profitability, as guided by the board.
Goenka emphasised the need for a dedicated focus on core business operations to achieve the company’s aspirations. “To ensure we meet our targets, the core businesses require focused time and energy, which is best served in an operational capacity,” he stated.
The decision comes after the board approved enhanced performance targets for Goenka, including quarterly consolidated revenue and EBITDA goals for the next four quarters starting October, as well as a commitment to distribute 25 per cent of consolidated net profits as dividends. Goenka’s performance will be evaluated against these metrics, with 40 per cent of his salary variable and contingent upon meeting the targets, subject to a board-defined cap.
This leadership shift follows significant developments for Zee, including the collapse of the Zee-Sony merger earlier this year under Goenka’s tenure. In April, Goenka voluntarily took a 20 per cent pay cut. Meanwhile, the Securities and Exchange Board of India (Sebi) continues its scrutiny over allegations of fund diversion, although Goenka secured interim relief from the Securities Appellate Tribunal.
Additionally, Zee’s Chief Financial Officer Mukund Galgali will now take on the role of Deputy CEO, leveraging his 17 years of experience with the company. The board has also recommended strengthening the management team by appointing a Deputy CEO.
