Alphabet (Google) CEO Sundar Pichai’s compensation package in 2022 exceeded $226 million, mainly due to a massive stock award. This marks a significant increase from his $2 million salary in 2021, and it comes at a time when Alphabet is trying to reduce costs.
Pichai received $120 million in stock awards that will vest over the next three years, and he also got a $90 million equity award, which will vest over a longer period. In addition, he received a cash bonus of $15 million, which is based on Alphabet’s performance.
The decision to give Pichai such a significant raise has raised some eyebrows, especially considering the company’s recent cost-cutting measures. In 2020, Alphabet announced that it would be slowing down its hiring and reducing its marketing budget due to the COVID-19 pandemic. Alphabet also announced that it planned to decrease its capital expenditures by approximately 5%.
However, despite these cost-cutting measures, Alphabet’s stock price has continued to soar, which may be one reason why Pichai’s compensation package has increased so dramatically.
Pichai’s salary increase also puts him in the same league as other top tech CEOs, such as Elon Musk and Tim Cook. However, some critics argue that this type of CEO compensation is excessive and that it contributes to income inequality.
Despite the controversy surrounding Pichai’s pay, Alphabet has defended its decision, stating that Pichai’s leadership has been instrumental in the company’s success. Alphabet has also pointed out that Pichai’s compensation package is largely tied to the company’s performance, which incentivizes him to work towards the company’s long-term goals.
In conclusion, Sundar Pichai’s salary has become a subject of controversy due to its significant increase in 2022, despite Alphabet’s cost-cutting measures. While some criticize this type of CEO compensation, others argue that it is justified given Pichai’s leadership and the company’s continued success.