Google-parent Alphabet has said it had approved a new equity award for CEO Sundar Pichai that ties more of his pay to performance, according to a Reuters’ report. It added that the board recognises Pichai’s “strong performance” as CEO.
Google added that the vesting of a significant portion of the award would depend on Alphabet’s total shareholder return relative to other S&P 100 companies, the Reuters report added.
The company said the performance stock units (PSUs) was increased to 60 per cent from 43 per cent in 2019, while increasing the performance requirement for the payout. Pichai, who is given an equity award every three years, was granted two tranches of PSUs with a target value of $63 million each.
The CEO was also given a grant of $84 million in the form of Alphabet’s restricted stock units.
In 2019, Alphabet had said its CEO Sundar Pichai will receive $240 million in stock awards over the next three years if he hits all of his performance targets, as well as a $2 million annual salary beginning in 2020.
Pichai joined Google in 2004 and helped lead the development of Google Toolbar and then Google Chrome, which grew to become the world’s most popular internet browser. He became Google’s CEO in August 2015. He joined the Board of Directors of Alphabet, Google’s parent company, in July 2017.
Chief executives of the top-10 tech companies have witnessed a 400 per cent hike in bonuses during the pandemic between 2020 and 2021 but Google CEO Sundar Pichai saw a drop of 14 per cent in bonus during the same period.
Pichai was granted a stock package of Rs 1,707 crore ($240 million) alongside a Rs 14-crore ($2 million) annual salary effective 2020, as part of his recent elevation to the role of Alphabet CEO, according to filings. He also received Rs 640 crore ($90 million) in performance-based stock units. His compensation in 2018 was nearly Rs 13.3 crore ($1.9 million).
Pichai started this week with a visit to India, where he was part of an engaging fireside chat with Ashwini Vaishnaw, Minister of Railways, Communications and Electronics & Information Technology and later met with Prime Minister Narendra Modi at his residence. He shared this tweet, thanking PM Modi and talked about Google’s continued partnership with the Indian government and support for India’s G20 presidency.
“Thank you for a great meeting today PM @narendramodi. Inspiring to see the rapid pace of technological change under your leadership. Look forward to continuing our strong partnership and supporting India’s G20 presidency to advance an open, connected internet that works for all,” Pichai said in a tweet on Monday.
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