In light of the recent layoffs and challenging macroeconomic environment, it looks that CEO Sundar Pichai will receive a significant pay reduction. Pichai revealed that all positions beyond “senior vice president” level will see a large decrease in their annual bonus during a recent town hall meeting with Google employees.
Pichai did not specify the extent or duration of the wage reduction that will be put into effect
“The annual bonus for all positions above the senior vice president level will be reduced “quite significantly.” Compensation for senior positions is based on business performance, “According to reports, Pichai stated in the town hall. Even though he didn’t expressly mention it, it is obvious from his statements that he would also take a pay cut. Pichai omitted to state how much of a wage decrease will be implemented or for how long.
Sundar Pichai received a substantial compensation rise just prior to Google’s announcement of layoffs
Now, just a few weeks before to Google’s announcement of layoffs, Sundar Pichai received a significant pay raise. The board of Alphabet, the parent company of Google, acknowledged Pichai’s “excellent performance” at the time and stated that a large portion of the award’s vesting would depend on Alphabet’s overall shareholder return in comparison to other S&P 100 firms.
Alphabet also mentioned that the performance stock units (PSUs) were changed from 43% in 2019 to 60% in order to raise the payout’s performance criterion. The Alphabet CEO also received two tranches of restricted stock units with a target value of $63 million (₹5,135,479,650.00 (INR)) each and an additional $84 million(Rs 6,84,73,02,000) in cash.
How much does CEO Sundar Pichai make per year?
Google revealed Pichai’s annual pay to be $2 million in a file beginning 2020. According to the IIFL Hurun India Rich List 2022, the net worth of the Google CEO decreased by 20% to Rs 5,300 crore. He yet remains one of the list’s highest-paid professional managers.
Google is having a difficult time right now. Pichai announced the axing of 12,000 positions across all industries just before the town hall. Many impacted workers claimed that both the layoffs and Google’s sudden removal of their access to all internal office groups left them unprepared. In fact, some people also complained that once their ID access changed red from green, they learned they had been fired.
Pichai reaffirmed that the layoffs were not “random.”
Among the 12000 staff members, many had been with Google for at least nine years. Such employees thought that the layoffs were not based on performance evaluation, which left them upset. Pichai reiterated that the layoffs were not “random” during the internal meeting.
In the coming weeks, additional markets, maybe including India, will follow the United States in terms of layoffs at Google.
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