Zomato’s CEO, Deepinder Goyal has announced donation from the employee stock options (ESOPs) to the Zomato Future Foundation (ZFF). He received this from the investors and the board of directors. Taking Zomato’s average share price over the past month, these ESOPs are worth around $90 million (Rs 700 crore).
Deepinder Goyal said,
“I want to reap the most profit for ZFF and save the interests of our shareholders. I do not intend to liquidate all these shares immediately but over the next few years. For the first year, I will liquidate less than 10% of these ESOPs towards this fund.”
He added that the foundation will also accept donations from other Zomato employees and will look at other fundraising avenues. It also plans to set up an independent governance board.
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What is Zomato Future Foundation and What Will It Do?
Zomato Future Foundation can cover the education of up to two children of all Zomato Delivery Partners. This will be up to ₹50,000 per child per year for workers who have been with Zomato for more than five years. If the employee works with the company for 10 years, the amount will increase to Rs 1 lakh per child every year.
Zomato Future Foundation will also provide higher education scholarships for children with higher performance and potential. The foundation will also help families of its delivery partners with educational support if they suffer an accident while on the job.
What are your thoughts about this initiative?