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Business News/ Companies / News/  Zee CEO Punit Goenka takes 20% pay cut
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Zee CEO Punit Goenka takes 20% pay cut

Goenka said the voluntary cut is in line with his goal of driving frugality, optimisation and a sharp focus on quality content.

Punit Goenka, managing director and CEO of Zee Entertainment Enterprises. Photo: MintPremium
Punit Goenka, managing director and CEO of Zee Entertainment Enterprises. Photo: Mint

Punit Goenka, managing director and CEO of Zee Entertainment Enterprises Ltd, has said his remuneration will be cut by 20%, in line with his goal of driving frugality, optimisation and a sharp focus on quality content.

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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ABOUT THE AUTHOR
Lata Jha
Lata writes about the media and entertainment industry for Mint, focusing on everything from traditional film and TV to newer areas like video and audio streaming, including the business and regulatory aspects of both. She loves movies and spends a lot of her free time in theatres, which makes her job both fun and a bit of a challenge given that entertainment news often just talks about the glamorous side of things. Lata, on the other hand, tries to find and report on themes and trends in the entertainment world that most people don't notice, even though a lot of people in her country are really into movies. She’s a graduate of the Columbia School of Journalism.
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Published: 02 Apr 2024, 07:16 PM IST
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