Google CEO Sundar Pichai can now cut a large part of his salary amid layoffs and difficult macro economic conditions. Pichai said that there will be a big cut in the annual bonus of all employees above the Senior Vice President.
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Google CEO Sundar Pichai can now cut a large part of his salary amid layoffs and difficult macro economic conditions. In a recent town hall meeting with Google employees, Pichai announced that all employees above the level of Senior Vice President would be taking a major pay cut.
Pichai told himself during the town hall
Pichai said during the town hall that there would be a big cut in the annual bonus of all employees above the senior vice president. For employees at senior level, the compensation will be linked to the performance of the company. Where he did not talk clearly about the cut in salary. But it was clear from his words that he would also cut his salary. Pichai did not specify the percentage of salary that he would take a cut and for how long he would take the reduced salary.
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Sundar Pichai’s salary was increased a few weeks before Google announced the layoffs. At that time, the board of Google’s parent company Alphabet spoke of Pichai’s performance as CEO. He said that a large part of this amount will depend on Alphabet’s total shareholder return compared to other S&P 100 companies.
Alphabet further said that the change in amount was done to increase the performance stock units (PSUs) from 43 per cent to 60 per cent in 2019, which increase the performance required for payouts. Apart from this, two installments of PSU were also given to the CEO of Google. Their target value will be $ 63 million and $ 84 million in the form of restricted stock of Alphabet.
So, how much will Pichai’s salary be now?
According to filings from 2020, Google has reported Pichai’s salary as $2 million. According to the IIFL Hurun India Rich List 2022, the net worth of the Google CEO has dropped by 20 per cent to Rs 5,300 crore. However, he is still included in the list of richest professional managers in the list.
Google is going through tough times. Just before the town hall, Pichai announced 12,000 job cuts.
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