After firing 12,000 Google employees, Sundar Pichai likely to take huge pay cut
Google's CEO Sundar Pichai will announce a significant pay cut for senior executives after firing 12,000 employess. This will also affect the CEO.
Google recently laid off about 12,000 employees as the tech giant takes cost-cutting measures. Now, new reports have suggested that CEO of Google’s parent company Alphabet, Sundar Pichai will announce a significant pay cut for senior executives.
Sundar Pichai recently said that all roles above the ‘senior vice president’ level will get a very significant reduction in their annual bonus. For senior roles, he said, the compensation is linked to company performance.
Though, he does not explain who will be affected with this pay cut, but it is suspected that he will also be getting a a pay cut as a top executive. Pichai, however, did not mention the percentage of salary that will be cut and for how long.
In December last year, Google approved a new equity award for Pichai as his ‘strong performance’ as CEO was recognized by the board.
According to reports, Pichai was granted two tranches of PSUs with a target value of $63 million each and was also given a grant of $84 million in the form of parent company Alphabet’s restricted stock units. He gets an equity award every three years.
As per a filing from 2020, Sundar Pichai gets an annual salary of $2 million (around Rs 16 crore). According to the IIFL Hurun India Rich List 2022, the Google CEO’s net worth fell 20 per cent to Rs 5,300 crore.
On January 20, Pichai sacked 12,000 employees to reduce operation costs amid fears of a global recession. The CEO said that as an almost 25-year-old company, Google is bound to go through difficult economic cycles in a letter to employees.”These are important moments to sharpen our focus, re-engineer our cost base, and direct our talent and capital to our highest priorities,” he said.
Pichai’s move to fire thousands of employees came under heavy scrutiny, with many on social media suggesting he should take a salary cut instead of sacking staff. Some people also gave the example of Apple CEO Tim Cook who recently announced that he would take 40 per cent pay cut.