Weeks before firing 12000 employees, Google CEO Sundar Pichai received massive pay hike
Google CEO Sundar Pichai had received a massive pay hike in December 2022, barely weeks before the decision to fire people was announced. By this time, reports of possible job cuts at Google had also surfaced and the company had started evaluating employees’ performance more closely.
By Divyanshi Sharma: A couple of days back, the news of Google announcing layoffs and deciding to slash as many as 12,000 roles globally had come as a surprise to all. The news was shared by CEO Sundar Pichai and he had taken ‘full responsibility’ of the same. Announcing the layoffs, Sundai Pichai, in a letter to all employees, said that the impacted people will receive full support from the company during this hard time.
However, the Google CEO had received a massive pay hike in December 2022, barely weeks before the decision to fire people was announced. By this time, reports of possible job cuts at Google had also surfaced and the company had started evaluating employees’ performance more closely.
Sundar Pichai’s massive pay hike
In December 2022, Google announced that it recognised Sundar Pichai’s excellent performance and that they will be giving an equity reward to the CEO. Alphabet Inc, Google’s parent company, had said at the time that the award had been modified to increase the performance stock units (PSUs) to 60 per cent from the previous 43 per cent in 2019, while increasing the performance requirement for the payout. Thus, more of Pichai’s pay will be tied to the performance of the company.
Every three years, the CEO of Google receives equity compensation. According to Reuters, Pichai received two USD 63 million target-value tranches of PSUs and a USD 84 million grant of Alphabet’s restricted stock units.
The Google CEO had previously turned down equity compensation in 2018 citing that his pay package was already ‘justified’.
Sundar Pichai to take a pay cut?
Fast-forward to January 2023, the Google CEO, in a recent town hall meeting with the company’s employees, had announced that all roles above “senior vice president” level will witness a significant reduction in their annual bonus.
“All roles above the senior vice president level will witness ‘very significant’ reduction in their annual bonus. For senior roles, the compensation is linked to company performance,” Pichai said as per reports. Even though he didn’t directly mention taking a salary cut, his words are enough.
Layoffs at Google
Google had announced layoffs on January 20 this year and stories of the impacted people began surfacing on LinkedIn. While a woman shared that she was fired right before her maternity leave, another married couple shared how both of them were handed over the pink slip at the same time.
The impacted employees in the US will be getting full salary for their notice period, a severance package starting at 16 weeks’ salary plus two weeks for every additional year at the company, and bonuses and other benefits as per their respective contracts. As for employees outside the US, they will be compensated as per their country’s laws, the Google CEO had revealed.
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