In a year filled with challenges and layoffs, four top executives at Google have received hefty stock payouts based on their performance. Despite a turbulent period for the company, Google’s senior vice president and chief business officer each received stock worth $35 million for 2023.
Alphabet, the parent company of Google, announced these payouts in a regulatory filing last week, highlighting the rewards for President and Chief Financial Officer Ruth Porat, Senior VP Prabhakar Raghavan, Chief Business Officer Philipp Schindler, and Legal Chief Kent Walker. These executives achieved the highest possible performance-based stock awards, a testament to their contributions in a tough year.
Each of these four executives maintained a base salary of $1 million last year, supplemented by a $1.5 million bonus. Additionally, they were granted a substantial number of performance-based and restricted stock units. These stocks will become theirs over time, provided they remain with the company.
The value of these stock payouts could vary widely, from nothing at all to double the initial number of shares, depending on how well Google performs compared to other major companies in the S&P 100. For 2023, the performance was strong enough to grant a 200% payout, elevating the total stock compensation for Porat and Walker to $23 million each, while Raghavan and Schindler received $35 million each.
This financial decision came shortly after Google had to make some tough calls of its own, cutting 12,000 jobs, which accounted for 6% of its workforce, due to strategic shifts and cost-cutting measures. Google’s CEO, Sundar Pichai, noted in an internal memo that these changes were necessary to invest in major priorities, despite the difficulty of the decisions.
The layoffs and project cutbacks led to a dip in morale within Google, as many employees expressed their frustrations publicly on social media platforms like LinkedIn and Twitter. Despite these internal challenges, Alphabet’s stock price has seen an impressive rise of 55% over the past year, signaling strong market confidence.
As Google navigates through these changes, the substantial rewards given to its top executives underscore the company’s commitment to retaining key leaders and recognizing their efforts to steer the company through uncertain times.
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Wow, talk about big bonuses! $35 million in stock awards? That’s more than most people make in a lifetime.
These stock payouts feel like a slap in the face to those who were laid off. It’s like Google is rewarding its top brass for making tough decisions at the expense of regular employees.