Alphabet, the parent company of Google, has announced that its CEO, Sundar Pichai, received over $200 million in total compensation for the year 2022. This news comes as a surprise to many, given that Alphabet has recently been implementing cost-cutting measures and tightening its budget.
According to Alphabet’s latest proxy statement, Pichai’s compensation package included $143.1 million in stock awards, $25 million in salary, and $32.5 million in bonuses. This is a significant increase from Pichai’s 2021 compensation, which totaled $55.3 million. The statement also notes that Pichai’s compensation was tied to the company’s financial performance and his individual performance as CEO.
While Pichai’s compensation may seem exorbitant, it’s worth noting that he is not the only tech CEO to receive a high salary in recent years. In fact, a study by the Economic Policy Institute found that CEO compensation at the top 350 U.S. companies has grown by 1,322% since 1978, while worker compensation has only increased by 18%.
However, the news of Pichai’s compensation has raised eyebrows given the company’s recent cost-cutting measures. In 2021, Alphabet announced a hiring freeze and postponed some projects in an effort to reduce expenses. The company has also faced criticism from some employees who have raised concerns about pay disparities and working conditions.
In response to the news of Pichai’s compensation, a spokesperson for Alphabet stated, “We believe that our compensation packages for executives reflect their impact on the business and are appropriate and competitive.”
Despite the controversy surrounding Pichai’s compensation, Alphabet’s financial performance has been strong. The company reported a revenue of $243 billion in 2021, up 44% from the previous year. Google’s advertising business, which accounts for the majority of Alphabet’s revenue, also saw strong growth in 2021.
In conclusion, Sundar Pichai’s $200 million compensation for 2022 has raised questions about executive pay and cost-cutting measures at Alphabet. While some may view Pichai’s compensation as excessive, others argue that it reflects his impact on the business and is in line with industry standards. Regardless, the news highlights the ongoing debate around income inequality and executive compensation in the tech industry and beyond.