Punit Goenka Steps Down as MD of Zee Entertainment

Punit Goenka steps down: Punit Goenka has resigned as the Managing Director (MD) of Zee Entertainment Enterprises Ltd (ZEEL) and has been appointed as the Chief Executive Officer (CEO) of the company. The move is aimed at enabling him to focus entirely on operational responsibilities assigned by the board.  

In a regulatory filing, ZEEL announced, “The board has accepted the resignation of Punit Goenka as Managing Director of the company and appointed him as CEO.” The transition took effect on November 18, 2024.  

Mukund Galgali, currently the Chief Financial Officer of ZEEL, has been elevated to the role of Deputy Chief Executive Officer.  

Performance-Linked Compensation

Goenka’s new role will mirror his previous full-time employment as MD, but with a revised compensation structure. Forty per cent of his salary will now be linked to achieving specific performance milestones, capped at limits set by the board.  

“With this step, he intends to dedicate his time entirely to enhancing the company’s performance and profitability, in alignment with the direction provided by the Board and the Nomination and Remuneration Committee,” said ZEEL.  

Board’s Endorsement

The board expressed confidence in Goenka’s leadership, stating that he would drive the company towards a stronger growth trajectory. “To ensure sharp operational focus, the core businesses require dedicated time and energy, which can only be achieved in an operational capacity,” it noted.  

In his statement, Goenka, son of media baron Subhash Chandra, said, “In the long-term interest of the company and all its stakeholders, I have approached the board with a request to focus on operational responsibilities as CEO.”  

Future Plans and Reappointment

On October 18, 2024, the board had approved Goenka’s reappointment for a five-year term starting January 1, 2025. However, this is subject to shareholder approval at the company’s Annual General Meeting on November 28.  

As part of this reappointment, the board revised Goenka’s performance targets. These include quarterly revenue and EBITDA targets for FY25, along with a requirement to allocate 25 per cent of consolidated net profits as dividends to shareholders.  

Recent Financial Performance  

ZEEL reported a significant 70.24 per cent increase in consolidated net profit to Rs 209.4 crore in the September quarter, despite a decline of 18.93 per cent in total income, which stood at Rs 2,034.4 crore.  

The company believes these changes will fortify its foundation and drive sustainable growth under Goenka’s operational leadership.

(With PTI inputs)


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