ZEE leadership rejig: Punit Goenka resigns as MD, CFO Mukund Galgali will be deputy CEO

Punit Goenka has asked the board of ZEE Entertainment Enterprises Ltd (ZEEL) relieve him from the position of managing director of the company as he wants to 'focus' on the operational responsibilities as the chief executive officer.

With this move, Goenka wants to 'dedicate' his time for the future of the company and enhance its performance, the statement said.

“The company remains on a firm footing and is taking all the necessary steps to build a robust foundation for its future. In order to ensure we maintain a sharp focus on achieving our targeted aspirations, the core businesses require dedicated time and energy which can only be achieved in an operational capacity. In the long-term interest of the company and all its stakeholders, I have approached the Board with a request to attain operational focus as the Chief Executive Officer. I am grateful to the Board for recognizing my efforts and supporting me in this approach,” Goenka said.

Mukund Galgali has been elevated to the role of Deputy Chief Executive Officer of the Company. Galgali will assume this role in addition to his profile as the Chief Financial Officer of the Company and will continue to report to Goenka.

ZEEL will also appoint a Deputy Chief Financial Officer to further strengthen the management team, the company said.

R. Gopalan, Chairman, ZEE stated, “The Board appreciates the approach taken by Mr. Punit Goenka to sharpen his focus towards enhancing the operational aspects ofthe Company as the Chief Executive Officer. His expertise and business acumen remain unmatched, and we remain confident in his abilities to deliver immense value to the Company and all its stakeholders in the position he assumes."

The Board said it remains confident in Goenka’s abilities to drive a higher growth trajectory for the Company and achieve the enhanced targets in an operational capacity and hence has specified higher performance metrics for his 40% variable pay. If he achieves his targets more than 100%, he may get a higher variable pay, subject to a cap.

The board of ZEEL had enhanced Goenka's performance targets for his re-appointment earlier. The board "considered and approved higher targets to evaluate the performance of Punit Goenka which includes Quarterly Consolidated Revenue Outlook for next 4 quarters (commencing Q3FY25), Quarterly Consolidated EBITDA Outlook for next 4 quarters (commencing Q3FY25) and payout of 25% of consolidated net profits as dividend to the shareholders of the Company."