Major Increase in Compensation
- Google Chief Executive Officer Sundar Pichai received a substantial boost to his salary package. Alphabet Inc. which owns Google approved a compensation package worth $692 million to be distributed over three upcoming years.
- The Financial Times reported these details which translate to an amount of ₹6,361 crore in Indian currency.
Structure of the Salary Package
- The compensation package includes several components:
- The company pays an annual salary of $2 million to employees.
- The company grants Performance Stock Units (PSUs) at a value of $126 million which depends on specific performance targets that the company needs to achieve.
- The company provides $84 million through Restricted Stock Vesting.
- Restricted stock vesting refers to company shares granted to an employee. The employee receives these shares after completing a certain period of service or meeting performance conditions.
Additional Share Allocations
Alphabet has distributed shares valued at $175 million to its subsidiary companies.
- Waymo
- Wing Aviation
The Alphabet board stated that they increased his salary because Pichai showed exceptional performance as a leader. The company also emphasized that his role is important as the technology sector rapidly evolves especially with the growth of artificial intelligence.
Pichai’s Journey and Company Growth
- Sundar Pichai started his career at Google in 2004. He became the CEO of Google in 2015. Later, he also took leadership of Alphabet.
- The company has experienced major market value growth during the last ten years. The value increased from $535 billion to approximately $3.6 trillion. The market value reached $4 trillion at one point during January.
- Google's product and service expansion together with its artificial intelligence research investments account for its business growth.
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