Google CEO, Sundar Pichai's salary Has Been Increased to $2 Million with A chance to make up to $240 million.
Chief Executive Officer of Google and Alphabet, Sundar Pichai's
salary has just been increased to $2 million per year, however, he is out to
make at least $240 million more provided he sticks and the company hits its
targets. This is according to a report contained in a December 17 Securities and Exchange Commission filing as reported by CNBC's Steve Kopack.
Sundar Pichai's new salary is expected to take effect from
the first quarter of next year,
precisely Jan1, 2020.
He is going to unlock at least $150 million more as long as
he sticks around and certain company performance targets are met. The reason
for this is that in addition to the increased salary, the CEO presently has a
compensation package which includes stock awards that are worth far more than
$2 million, of which some these packages are tied to the company's performance
and his staying in the role.
Pichai has been Google's CEO since 2015, and he recently got
promoted to become the CEO of the parent company, Alphabet, when the cofounders,
Larry Page and Sergey Brin stepped down earlier this month.
According to Alphabet, Pichai would be eligible for the first
portion of stock awards based on how the company performs against the S&P
100 index between the period of 2020 to 2021. He would also get the second
block depending on how it does against the same metric over the period of 2020
to 2022.
It is important to note that while Alphabet said the "target
value" of each portion of stock was $45 million, going by the contents of
the filing and depending on performance, he could get paid out 0% of those
awards or as much as 200%. This means that his actual payday could be quite a
bit higher provide that Alphabet in particular outperformed. With respect to
available data, this seems to be the first time Alphabet has included
performance-based stock to executive payouts. This practice, however, is common
in other major tech companies, like Uber, Microsoft, and Apple.
Pichai will also get another $120 million in restricted stock
units that will become permanent over time, along with another $30 million
"transitional award" in stock that will also become permanent in
2020. These particular earnings are not tied to Alphabet's performance, so
Pichai will get them as long as he remains at the company.
Even though the salary has increased, Pichai still would not
make the list of highest-paid tech CEOs in the United State. In 2019, the list
was topped by Oracle's Mark Hurd, who died earlier this year, at $108.3
million. Microsoft CEO Satya Nadella made a base salary of $2.3 million,
slightly higher than Pichai's, but that was only a small part of his total 2019
compensation of $42.9 million. He was paid another $10.8 million in cash, plus
$29.6 million in stock awards based on Microsoft's performance under his lead.
According to a report by Bloomberg, when Pichai was CEO of
Google, he made an annual base salary of $650,000 and previously shirked
additional shares of the company.
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