Zee CEO Punit Goenka takes 20% pay cut

Goenka said, “The organisation 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.” He added that the pay cut was voluntary and limited to him.

In FY23 Goenka received a remuneration of ₹35 crore, including ₹21 crore in salary and allowances, ₹9 crore in variable pay, a ₹5-crore one-time payment, and a provident fund contribution of ₹0.2 lakh, according to the company’s annual report. His remuneration was ₹41.1 crore in FY22 and ₹13.2 crore in FY21.

Goenka’s decision has been submitted to the board’s nomination and remuneration committee and the chief financial officer, Zee said. R. Gopalan, chairman of Zee Entertainment Enterprises, said “As chairman of the board, I welcome the decision and appreciate the thought and intent behind the same. It is important for leaders to set the right examples, and Mr. Goenka has done the same by taking direct charge of the 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.”

Late last month the board of Zee Entertainment Enterprises institutionalised a monthly management mentorship program to help the management team achieve key performance metrics, including the targeted 20% Ebitda margin that Goenka has proposed. The special committee will review the management’s business performance and provide the required directional guidance, Zee said.

On 22 January, Sony Pictures Entertainment formally terminated its merger agreement with Zee Entertainment after months of debate on the appointment of a chief executive for the merged entity. Goenka said in a recent earnings call that the company is now charting a three-pronged approach – cutting costs, reducing overlaps between businesses, and enhancing quality to regain margins.

The mega-merger officially met its end on 29 February, when Sony Group Corp formally withdrew the agreement to merge its India operations with Zee Entertainment Enterprises from the National Company Law Tribunal (NCLT).

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Published: 02 Apr 2024, 07:16 PM IST