Google CEO Sundar Pichai has hinted at a major pay cut for senior executives following the recent termination of 12,000 employees. During a town hall meeting with employees, Pichai stated that those holding roles above the senior vice president level will see a substantial decrease in their yearly bonus. He explained that the compensation for senior positions is tied to the company’s performance.
Google CEO Sundar Pichai is expected to take a pay cut along with other senior executives following the termination of 12,000 employees. Pichai didn’t specify the percentage or duration of the salary reduction, however. Despite the pay cut, he received a new equity award from Google in December of last year, recognizing his ‘strong performance’ as CEO.
Pichai was given two tranches of PSUs worth $63 million each, and a grant of $84 million in the form of Alphabet’s restricted stock units. According to a 2020 filing, his annual salary was $2 million. Despite his wealth, Pichai’s net worth fell 20 per cent to Rs 5,300 crore, according to the IIFL Hurun India Rich List 2022.
The decision to lay off 12,000 employees was made by Pichai on January 20th as a measure to reduce operation costs amid fears of a global recession. In a letter to employees, he justified the action by saying that as a nearly 25-year-old company, Google must navigate through difficult economic cycles.
The move faced criticism, with many on social media suggesting that Pichai should have taken a salary cut instead of laying off staff. Some pointed to the example of Apple CEO Tim Cook, who recently announced a 40 per cent pay cut.
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