Zee never surprises you and is always very creative in decision making – especially related to it’s founder management.
Founder family continuing to control the operations despite owning just 3.99% of the Company has been a significant point of concern for the investors.
Punit Goenka, the MD and CEO, 10 days before the shareholders’ meeting (in which he was to seek approval for another five-year term as MD and CEO), has stepped down as the MD but will continue to be the CEO.
Why?
Company says because he would be able to focus greater on the operations !
To me – because he would not have got the shareholder’s nod to continue as the MD. He therefore has stepped down from that position.
CEO position doesn’t require shareholder’s approval and hence continue in that and still effectively be in a significant control of the Company’s operations.
He is also a director on the board for which he would still need shareholders’ approval.
Institutions that own 37.5% of the Company are unlikely to like the above reshuffle and may raise pertinent questions in the meeting !