Punit Goenka, managing director and CEO of Zee Entertainment Enterprises Ltd., has resigned from his position as MD but will continue as CEO. The decision comes just 10 days ahead of the shareholders’ meeting where he was due to seek approval for another five-year term as MD and CEO, starting from January 1, 2025 to December 31, 2029.
According to Zee, Punit will remain on the board, pending shareholders’ approval of his appointment as an executive director at the annual general meeting on November 28. The appointment falls under the ordinary resolution category, requiring more votes in favour than against.
Legal experts say that though the CEO is a key management post, shareholder approval is not required to continue as one. However, to continue as an executive director, shareholder approval is required, with Punit’s previous responsibilities as an MD being diluted.
In a regulatory filing, Zee said, Punit Goenka had resigned from the MD’s position on November 18 to “entirely focus on his operational responsibilities”. The filing added that he has been appointed as CEO of the company, with the variable portion (40%) of his salary to be paid to him only on achievement of certain milestones, subject to a maximum cap as defined by the board.
In April, Punit Goenka had said that he would take a 20% cut in his remuneration. In FY 2023, his remuneration was Rs. 35 crore, including Rs. 21 crore in salary and allowances, Rs. 9 crore in variable pay and Rs. 5 crore as a one-time payment.
Zee further said that it had promoted CFO Mukund Galgali as deputy CEO of the company.