Sundar Pichai was appointed as the new CEO of Google’s parent, Alphabet, as Larry Page and Sergey Brin are taking a step back from the daily operations of the company. With this promotion, Sundar Pichai has gained a massive paycheck which is even bigger than his last raise.
Last week, during the regulatory filing, the Board of Directors has approved a $240 Million compensation package for Pichai, based on a statement from Alphabet. This is in recognition of the additional responsibilities that Sundar would have to take on as he oversees Alphabet’s segment for other bets, which basically deals with investments, which have both high reward and high risk, in ideas that are potentially transformative and could be taken straight off science fiction.
Sundar would be the recipient of both PSUs (Performance Stock Units) and restricted GSUs (Google Stock Units); each is valued at $45 million. He would also receive GSU worth $120 million that would be based on the timing rather than the Total Shareholder Return (TSR). Additionally, there is a onetime Transitional Grant worth $30 million which would vest on the same date, except during quarters, so it would take him only a year to pocket this portion of the package.
Sundar’s base salary would also triple to $2 million a year. Originally, Page and Brin had been drawing a salary of $1 for many years. In case the TSR performance is good, the PSU could vest 200% potentially, and increase the package by $90 million. However, it should be noted, that Alphabet does not disclose what kind of threshold it should hit to return 200% vesting. In 2018, prior to the promotion, Sundar was earning $1.9 million.
Alphabet Inc is an umbrella for multiple organizations such as Google, Android OS, Google Search, YouTube, Nest Labs, etc. and with this promotion, Sundar would be one of those people who would always have a very busy workday.
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