Punit Goenka’s Resignation as MD and CEO of Zee Entertainment

Punit Goenka, the Managing Director (MD) and Chief Executive Officer (CEO) of Zee Entertainment Enterprises, resigned from his position as MD but will continue to serve as CEO of the company. This decision comes just days before a shareholders’ meeting where Goenka was set to seek approval for a new five-year term as MD and CEO, from January 1, 2025, to December 31, 2029. 

Resignation Announcement

• Punit Goenka resigned from the MD role, effective Monday, but will continue as CEO. The resignation is aimed at focusing entirely on operational responsibilities.

Shareholder Approval

• Goenka’s continued presence on the board as an executive director requires shareholder approval at the Annual General Meeting (AGM) on November 28, 2024. The appointment is subject to ordinary resolution, meaning more votes in favor than against.

Remuneration 

• Goenka had voluntarily decided to take a 20% pay cut in 2024. His total remuneration for FY23 was ₹35 crore, including salary, allowances, variable pay, and one-time payments.

Family Ownership

• Goenka and his family own 4% of Zee, with public shareholders holding 96%. Major stakeholders include LIC, FPI Government Pension Fund Global, and mutual funds like HDFC and ICICI Prudential.

CFO Promotion

• Zee promoted Mukund Galgali, the company’s CFO, to the position of Deputy CEO as part of the leadership restructuring.

Impact of Decision

• Legal experts suggest that while shareholder approval is not required for Goenka’s role as CEO, it is necessary for his continued presence on the board as an executive director.

Background

• Zee Entertainment: Founded by Goenka’s father, Subhash Chandra, in 1992, Zee is one of India’s largest media conglomerates.
• Public Shareholding: A majority of the company’s shares are owned by public stakeholders, with LIC holding the largest portion of 5%.