ZEE Entertainment Enterprises Ltd.’s (ZEE), MD & CEO, Punit Goenka on April 2 announced that he is taking a 20 percent cut in his personal remuneration on grounds of focusing on the company's growth plans.
"Frugality, optimization and a sharp focus on quality content are the three key tenets of the plan implemented by Goenka to drive the company on targeted goals and the decision in in line with this approach," the company said in a regulatory filing.
Commenting on this decision, Goenka said, "The organization is sharply focused on adopting a frugal approach, as we move forward towards the set goals for the future. While I am in the process of implementing the required steps and actions across all the verticals of the Company, I intend the required change in mindset, to begin from my desk. It is imperative to adapt as per the situation and at this point in time, Accountability & Agility' is the need of the hour."
Zee said that Goenka's decision has been submitted to the Nomination and Remuneration Committee of the Board and the Chief Financial Officer.
Recently, Zee, which went through a termination process of the mega $10 billion merger with Sony Pictures Networks India after around two years of talks, had announced that its revenue vertical will directly report to Goenka.
This announcement is the first step towards streamlining the organisation, and is expected to help optimise resource allocation and enhance productivity, Zee had said.
On today's remuneration cut decision, R. Gopalan, Chairman, said, " It is important for leaders to set the right examples, and Mr. Punit Goenka has done the same by taking direct charge of critical (revenue) vertical of the Company. It is imperative for the management to enhance their productivity levels to achieve the set goals for the future and bring the Company back to its original glory."
Further, the company also stated that under the guidance of the Board, Goenka will continue to take all the strategic steps that are aimed towards generating value for the Company's shareholders.
The Board of the Company, chaired by Gopalan, has instituted the required measures, to guide and mentor the management on a regular basis, in order to enable the team to achieve the set goals for the company.
"The institution of the 'Independent Investigation Committee' and the 'Monthly Management Mentorship (3M) Program' are the steps taken by the Board, keeping the interest of all the shareholders of the Company at the fore," Zee added.
The board of Zee had last month institutionalised a structured Monthly Management Mentorship (3M) Program.
The objective of the 3M Program is to guide and enable the management team to achieve key performance metrics, including the targeted 20% EBITDA margin, proposed by the MD & CEO, said Zee.
Meanwhile, shares of Zee on April 2 closed ZEE 4.32 percent higher at Rs 153.35 apiece on BSE.
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