Sundar Pichai, who was recently appointed as the CEO of Google’s parent company Alphabet, will get USD 2 million in salary. Pichai will also receive USD 240 million stock packages in his new position, the board announced on Friday. In a filing with the Securities Exchange Commission, Alphabet said that the substantial raise in Pichai’s salary will be effective from January 1. The compensation package has been offered to recognize his expanded role as CEP of Google and Alphabet. He has been the CEP of the search engine giant since 2015. He was given the new role earlier this month after Alphabet co-founders Larry Page and Sergey Brin decided to step down from the position of CEO and president respectively. While the position of CEO was offered to Pichai, the post of president has now been eliminated.
Page and Brin will remain in control of the board as Pichai has not been given any additional voting rights with his new shares. Pichai has received USD 90 million in stock that will vest by the end of 2022 if Alphabet’s stocks outperform the S&P index. This stock will be divided into two equal parts with USD 45 million each. The filing said that Pichai received to other stock grants of USD 30 million and USD 120 million. They are not linked to performance but his continued employment.
The development comes at a time when the tech giant is pushing for its ambitious initiatives like personal finance and health care. However, Google is under public pressure over data security issues. Regulators are worried over the reach of big companies and fear that they can use these data for financial gain. It is facing an antitrust probe from 50 attorneys general across US states. Pichai will now become the face of the search engine giant. He has announced that the TGIF meeting will now be held monthly instead of weekly and biweekly. The move is being taken to reduce ‘coordinated effort’ to leak remarks made during these meetings.