Punit Goenka to remain Zee Entertainment chief, remuneration to be reviewed

After posting muted third quarter (Q3) results, Zee Entertainment Enterprises (ZEEL) on Wednesday allayed investor concerns on management continuity and board structure.

Punit Goenka, managing director and chief executive officer of ZEEL, will continue in his role, even as his remuneration is being reviewed by the board after the promoter ownership has come down 5 per cent during the quarter.

Moreover, founder and former chairman Subhash Chandra, who stepped down from his position in November but continues to be on board as non-executive director, will not be putting up his name for re-election next financial year. The company’s board will be strengthened by adding independent directors.

On the operational front, the media major said it is confident of recovering dues from Siti Cable and DishTV over 12 months and 24 months, respectively. Further, as a business optimisation measure, the company may shut down its linear business in some of the international geographies, especially in Asia, but have presence in these markets through its over-the-top platform, Zee5.

Commenting on D-Street concerns over the past few months on management continuity and the board structure, Goenka said he would continue to work for the company as long as the shareholders want. The promoters now own around 5 per cent stake in ZEEL. He added that the board has appointed a reputed human resources consultant to review the salary and compensation structure of Goenka, in line with the global best practices.

ZEEL does not foresee any significant management changes in the near term.  

Speaking on the board structure, Goenka said he would remain the sole representative of the promoter family to the board of the company and Chandra would not be putting up his name for re-election in the next financial year and would assume the role of chairman emeritus.

Days after selling stake in Zee, Chandra had stepped down as chairman of the company, but continues to be the non-executive director on ZEEL’s board.