Sundar Pichai, CEO of Google has stated that there will be a salary cut. He informed the employees about the move in the recent town hall meeting, announcing that all roles above the "senior vice president" level would significantly reduce their annual bonus. The CEO linked the compensation for senior roles to the company's performance. However, he didn't specify the percentage of salary that would be cut or for how long.
ALSO READ: 219 tech firms fired around 68,000 employees in January, more layoffs expected: Know-more
Pichai received a massive salary hike just a few weeks before the layoffs. His parent company, Alphabet, recognized Pichai's "strong performance" as CEO and granted him two tranches of PSUs with a target value of $63 million each and $84 million in the form of Alphabet's restricted stock units. The award was also tweaked to increase the performance of stock units from 43% to 60%, increasing the performance requirements for the payout.
ALSO READ: Why Twitter removed the direct message option from the platform?
Google's recent layoffs started in the United States and are expected to continue in other markets, including India, in the coming weeks. Many impacted employees reported being surprised that Google abruptly removed their access to all internal office groups. Despite the recent 20% decrease in Pichai's net worth to ₹5,300 crores, he still ranks amongst India's top richest professional managers.
FAQ
Q.What is the reason behind Sundar Pichai's salary cut?
Sundar Pichai has announced a reduction in annual bonuses for senior roles above SVP in response to recent layoffs and tough macroeconomic conditions. The CEO linked the compensation for senior roles to the company's performance.
Q.Did Sundar Pichai receive a salary hike before the layoffs?
Yes, Pichai received a salary hike a few weeks before the layoffs. Alphabet recognized Pichai's "strong performance" as CEO and granted him two tranches of PSUs with a target value of $63 million each and $84 million in the form of Alphabet's restricted stock units.
