The founder and CEO of Zomato’s online food delivery platform, Deepinder Goyal, said on Friday that he would donate his ESOPs worth $90 million (nearly Rs 700 crore) to the Zomato Future Foundation (ZFF) to help fund the education of the children of its delivery partners.
Goyal said that before Zomato went public, investors and the board granted him ESOPs (employee stock ownership plan) based on his past performance and some of the ESOPs acquired last month, because there is a minimum of one year of acquisition required according to law.
“I am donating all proceeds from these ESOPs (net of tax) to the Zomato Future Foundation (ZFF). The ZFF will cover the education of up to two children from all Zomato delivery partners, up to at Rs 50,000 per child per year on actuals (above a certain quality of service benchmark) who have been part of our fleet for over five years.”
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He further said that the amount will go up to Rs 1 lakh per child per year if the delivery partner completes 10 years with the company.
However, “5/10 year service thresholds will be lower for female delivery partners. We will also have special programs for girls and introduce ‘cash prizes’ if a girl completes grade 12, as well as her degree,” he added. When contacted, Zomato’s spokesperson declined to comment.
Goyal said there would also be higher education scholarships beyond these limits for children with higher performance and potential. In the case of the company’s delivery partners who encounter “unfortunate circumstances such as accidents, at work,” education and family livelihood support will be provided regardless of the length of service, a he declared.
Reiterating that 100% of the proceeds from this “ESOP acquisition round” are committed to ZFF, he said, “To get the most out of ZFF and protect the interests of our shareholders, I do not intend to liquidate all of these actions immediately, but over the next few years.”
For the first year, less than 10% of these ESOPs will be liquidated to this fund, adding that the ZFF will also be open to donations from other Zomato employees.
“We will also explore other fundraising opportunities for ZFF. We will also set up an independent governance board for ZFF,” he said, adding that education is the one and only something that can give delivery partners’ children “a chance to build a much better life than their previous generations”.
He added, “I also hope that some of these children will grow up to lead the charge in various businesses that we build within Zomato over time, in addition to creating new businesses that will change the future of our country. “
(Edited by : Jomy Jos Pullokaran)
First post: STI