Punit Goenka, CEO of Zee Entertainment Enterprises Ltd (ZEEL), has encountered a significant setback after shareholders voted against his reappointment as a director at the company’s annual general meeting (AGM) on Thursday. Voting results revealed that 50.45% of shareholders opposed the resolution to reappoint Goenka, who had earlier stepped down as managing director but remains at the helm of ZEEL as CEO until 2029.
This decision comes after Goenka resigned as managing director on November 18, citing his desire to focus on his operational responsibilities. Despite his resignation, Goenka’s tenure as CEO is unaffected, and he is set to continue leading ZEEL for the next five years.
The AGM saw the introduction of new leadership with the appointment of Saurav Adhikari as a non-executive director, pending member approval. This move aims to bolster the company’s governance amidst its ongoing operational and financial challenges.
The rejection of Goenka’s reappointment follows advice from proxy advisory firms like Institutional Investor Advisory Services (IiAS) and InGovern Research Services, who urged shareholders to vote against his reappointment. The advisory firms pointed to ZEEL’s failure to finalize a merger with Sony Pictures Networks India and its ongoing cost-cutting measures as key issues undermining shareholder confidence.
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At the AGM, Goenka shared his vision for ZEEL’s future, emphasizing the company’s strategic focus on frugality, optimization, and high-quality content. Despite a tough advertising environment, he highlighted ZEEL’s growing viewership and the impact of the New Tariff Order (NTO) 3.0, which has helped the company counter declining ad revenues.
The company has faced significant operational and financial challenges, including the collapse of its merger talks with Sony, which forced ZEEL to streamline its operations. To improve its financial health, ZEEL reduced its workforce by 15%, cutting around 700 jobs. Despite these challenges, Goenka remains optimistic about the company’s ability to navigate the competitive landscape and achieve growth.
Industry experts believe the failed reappointment of Goenka reflects shareholder dissatisfaction with the company’s direction under his leadership. Shriram Subramanian, founder of InGovern Research Services, stated, “Shareholders are angry that the company could not complete the Sony merger. The board must reflect on its leadership and strategy moving forward.”
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