Google raises top executives’ salaries to at least $ 1 million USD after throwing wage increases to inflation

Alphabet-owned Google plans to give big increases and stock rewards to four of its top executives – just weeks after the technology giant informed employees they should not expect to receive inflation-based pay rises.

The four directors – Google CFO Ruth Porat, senior vice president Prabhakar Raghavan, chief business officer Philipp Schindler and chief legal officer Kent Walker – will receive a base salary of $ 1 million by 2022, up from $ 650,000, according to an SEC application dated 28. December. .

Google said executives are also eligible to participate in a $ 2 million bonus program “based on contributions to Google’s performance relative to social and environmental goals for 2022.” They also received each share reward, which is composed of a mix of performance-based and limited share units and valued at between $ 23 million and $ 35 million.

Google did not immediately respond to a request for comment.

The changes in the director’s remuneration were announced after a December meeting on Google’s year-ahead strategy for 2022. During the meeting, Google executives asked a question about the impact of inflation on employee salaries, which generated great interest in the company’s internal forum CNBC reported.

A man walks past the Google logo inside an office building
Google indicated that the privates would not receive increases linked to rising inflation when asked about the issue during a corporate meeting, but four executives would receive a $ 350,000 increase in base salary.
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Google CEO Sundar Pichai read the question, which asked if the company planned to implement “general wage adjustment” to counter the impact of rising inflation. Frank Wagner, the company’s vice president of compensation, said employees would receive their annual compensation, but not salary adjustments.

“As I mentioned earlier at other meetings, when we see price inflation rise, we also see increases in the cost of labor or market wages,” Wagner said, according to the newspaper. “They have been higher than in recent times, and our compensation budgets have reflected that.”

Shares of Alphabet rose more than 65 percent last year. In October, Alphabet reported a business record of $ 65.1 billion in its third fiscal quarter of 2021, as well as a record profit of $ 18.9 billion.

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