In a town hall meeting with Google employees, Pichai said that all positions above-mentioned the “senior vice president” group will see a large drop in their yearly bonus.
If allegations are to be accepted, Google Chief Executive officer Sundar Pichai will take a significant compensation cut after firing close to 12000 workers and in the midst of a challenging financial environment.
He did not mention who will be impacted, but it is possible that he, too, as a top executive, will see his income decrease. Pichai, however, omitted to specify the amount and duration of the compensation reduction.
Google approved a fresh equity prize for Pichai in December of last year. The tech corporation claimed that Pichai’s “strong performance” as CEO had been acknowledged by the board.
The annual bonus for all positions that have been mentioned that the senior vice president level will be reduced “quite significantly.” According to sources, Pichai said during the time of town hall that top roles’ pay is based on the success of the company.
Pichai’s decision to terminate thousands of employees drew intense criticism, with multiple social media platforms advising him to accept a pay reduction rather than remove colleagues. Others cited Apple CEO Tim Cook as an example, who just revealed that he would take a 40% wage cut.
Apple stated in a statement with the SEC that Tim Cook the CEO will get a pay decrease this year, bringing his total income down to $49 million.
Although the CEO of Google did not specifically state whether he would take a pay cut, it appears from what he stated that there is a strong possibility that he may accept a significant pay cut himself.
Pichai did not also say how much of a salary drop will be implemented or how long it will last. Before the releases, Pichai had gotten a sizable pay raise.
Pichai received praise from Alphabet, the parent company of Google, at the time for his “strong execution” as CEO. Pichai, who gets equity awards every three years, received two PSU tranches with a mark value of $63 million each as well as $84 million worth of Alphabet’s restricted stock units.
Pichai’s annual compensation was revealed from Google to be $2 million in a file dated 2020. The Google CEO’s overall net worth has decreased by 20%, according to the India Infoline Finance Limited Hurun India Rich List 2022, and is now valued at Rs 5,300 crore.
Pichai let off about 12,000 workers on January 20 in an effort to cut operating expenses as concerns about a major global slump mounted.
The nearly 25-year-old Google, according to Sunak’s letter to the staff, is extremely likely to see challenging economic times.
These are crucial times to narrow our focus, redesign our cost structure, and focus our skills and resources on our top goals, he said.