Google has announced a massive salary hike for four of its top executives. The update comes weeks after the tech giant told employees to not expect to receive inflation-based pay raises this time. Also Read - Google Pixel 6a and the first Pixel smartwatch could launch on the same day
The company also said these top-level executives are eligible to participate in a $2 million bonus program “based on contributions to Google’s performance against social and environmental goals for 2022.” Also Read - Google rolls out major update to 2 billion Chrome users, fixes critical bugs
They will also get stock awards each, which will be a mix of performance-based and restricted stock units. It will be valued at between $23 million and $35 million. Also Read - Delhi Police sends notice to Clubhouse, Google over targeting Muslim women in a group chat
The changes in the compensation of top executives were announced during an all-hands meeting last month.
These executives include — Google CFO Ruth Porat, Senior Vice President Prabhakar Raghavan, Chief Business Officer Philipp Schindler, and Chief Legal Officer Kent Walker. As per an SEC filing dated December 28, all four executives will receive base salaries of $1 million (which is roughly around Rs 1.1 crore per year and Rs 9.16 lakh) in 2022, which is up from $650,000.
In the same meeting, Google CEO Sundar Pichai asked if the company planned to implement a “blanket salary adjustment” to address the impact of surging inflation? Answering this, Frank Wagner, Google’s Vice President of compensation, said that employees will receive their annual compensation awards but not salary adjustments.
Wagner said, “as I mentioned previously in other meetings when we see price inflation increasing, we also see increases in the cost of labor or market pay rate”. “Those have been higher than in the recent past and our compensation budgets have reflected that.”
Commenting on the matter, a Google spokesperson said, as quoted by The Post, “as we have stated, employees did receive pay increases at the end of the year to keep them at the top of their local labor market, which does reflect the cost of labor and pay inflationary increases.” The spokesperson further added that employees will also receive an increase in salary, bonus and equity-based on their overall performance.