Zee Entertainment Chief Executive Punit Goenka Resigns As Managing Director

Zee Entertainment Enterprises Ltd.'s Chief Executive Officer Punit Goenka has resigned as managing director of the company, the media firm said in a stock exchange filing on Monday. Goenka, however, will continue to hold the position of CEO and shall entirely focus on his operational responsibilities, the statement said.

Goenka intends to dedicate his time entirely towards the future of the company by enhancing its performance and profitability levels in line with the direction given by the board, a statement said.

"In order to ensure we maintain a sharp focus on achieving our targeted aspirations, the core businesses require dedicated time and energy, which can only be achieved in an operational capacity," Goenka said.

Last week, the board approved higher targets to evaluate Goenka's performance, which includes quarterly consolidated revenue and Ebitda outlook for the next four quarters commencing in October and a payout of 25% of consolidated net profits as a dividend to the shareholders.

The CEO's performance will be tracked on the basis of these targets, and the variable portion of the salary (which is 40%) will be paid to him based on achievements, subject to a maximum cap as defined by the board, the company said.

Notably, it is under Punit Goenka that the Zee-Sony merger deal collapsed earlier this year. In April, he took a 20% reduction in his remuneration.

The Securities and Exchange Board of India had barred him from holding a key managerial position over an alleged fund diversion. While he won relief from the Securities Appellate Tribunal, the regulatory scrutiny continues.

Zee Enterprises Chief Financial Officer Mukund Galgali will also assume the role of deputy CEO. His experience includes 17 years with the Zee Group.

The board also advised the management to appoint a deputy CEO to further strengthen the management team.