Tech colossus Google revealed on Wednesday that it had authorised a new equity award for CEO Sundar Pichai that more closely links his pay to performance.
The company added that Pichai’s “strong performance” as CEO has been acknowledged by the board and that a large portion of the award’s vesting will depend on how Alphabet’s total shareholder return compares to that of other S&P 100 companies.
Alphabet Inc., the parent company of Google, stated that the award was changed to increase the performance stock units (PSUs) to 60% from 43% in 2019 while lowering the performance threshold for the payout.
Reuters reports that Pichai, who receives equity awards every three years, was given $84 million in the form of Alphabet’s restricted stock units in addition to two PSU grants with target values of $63 million each.
Pichai’s net worth decreased by 20% to Rs 5,300 crore, according to the IIFL Hurun India Rich List 2022, but he still ranks among the ten richest professional managers. Prior to that, Pichai declined a similar new grant of stock options in 2018, claiming he had already been paid “generously.”
Pichai spoke with Ashwini Vaishnaw, the IT minister, while he was earlier this week in India. The two also discussed “Make in India,” national tech regulations, and other topics.
Pichai lavished praise on the India export success story. “Given the enormous talent that exists, there is a fantastic opportunity. UPI and Gpay have already expanded internationally for Google. We now have AI-based flood forecasting methods that originated in India before spreading to Bangladesh “said he. He anticipates that there will be more instances of India overtaking other countries and then finding a way to export that success story.