Google Executives to Receive 200% Performance-Based Stock Payouts in 2023

Google executives are set to receive substantial stock payouts in 2023, despite a year of layoffs and challenges for the tech giant. The company's senior VP and chief business officer have each been granted $35 million in stock for the upcoming year.

High Stock Payouts Amid Turbulent Times

Google's parent company, Alphabet, has awarded four top executives with tens of millions of dollars in stock payouts for 2023, based on the company's performance in public markets. President and chief financial officer Ruth Porat, senior VP Prabhakar Raghavan, chief business officer Philipp Schindler, and legal chief Kent Walker are set to receive the maximum number of performance-based stock units, as disclosed in a recent regulatory filing by Google.

Stable Salaries with Lucrative Bonuses

Despite the challenges faced by the company, the base salaries for the four executives remained at $1 million in the previous year. In addition to their base salaries, each executive received a $1.5 million bonus. The executives were also granted significant amounts of performance and restricted stock units, which will vest at different intervals and are contingent upon the executives staying with the company.

Variable Stock-Based Compensation

The stock-based compensation for the executives can fluctuate from 0% to 200% of the target number of shares, depending on Google's performance relative to the S&P 100 index. This means that the executives' total stock value can vary significantly based on the company's performance.

Approval Amid Company Challenges

The approval of the executives' compensation package came in early February following a challenging year for the company. Google made the difficult decision to cut 12,000 jobs, amounting to 6% of its workforce in the previous year, with more layoffs expected in 2024. CEO Sundar Pichai emphasized the need for tough decisions to create capacity for investment in the company's key priorities.

Employee Backlash and Stock Performance

The layoffs and project cancellations have led to a decrease in morale within the company, with reports of backlash from employees on platforms like LinkedIn and Twitter. Despite these challenges, Alphabet's stock has shown resilience, with a 55% increase in value over the past year.

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By: shubhangigoel@insider.com (Shubhangi Goel)
Title: Google Executives to Receive 200% Performance-Based Stock Payouts in 2023
Sourced From: www.businessinsider.com/alphabet-google-executive-pay-cfo-president-200-performance-stock-payout-2024-5
Published Date: Thu, 02 May 2024 06:41:15 +0000