Google’s new parent Alphabet CEO Sundar Pichai will receive a raise. Alphabet said in a filing with the Securities and Exchange Commission (SEC) that Pichai will receive a salary of $ 240 million and an annual salary of $ 2 million in 2020.
Earlier this month, Google co-founders Larry Page and Sergey Brin announced that they will resign from Alphabet’s leadership positions and let Pichai manage the entire corporate group . The company said in the filing that the pay rise was a recognition of Pichai’s “greater responsibility” at Google and Alphabet. According to the Bloomberg Pay Index, Pichai’s annual salary in 2018 was $ 1.9 million.
Although Page and Brin gave up formal management positions at Alphabet, they still have voting rights on the company’s board of directors.
Pichai’s raise will take effect on January 1, 2020. If Pichai leads Alphabet to achieve its 2020 performance target, he will receive a $ 240 million stock award in three years. According to Bloomberg, if Alphabet’s stock price performs better than the S & P 100 Index, he may receive another $ 90 million in stock awards.
At the time of this announcement, Alphabet is facing fierce turbulence, which Pichai will have to deal with. The relationship between the company’s management and ordinary employees has become tense, and many of Alphabet’s actions have caused protests from employees, including Google’s cooperation with the military and the company’s handling of sexual assault allegations. In addition, Google also faces multiple antitrust investigations from the US federal and state governments. The French antitrust agency announced a fine of 150 million euros ($ 167 million) for Google because of its opaque and unpredictable advertising rules.
Pichai must also deal with the impact of changes in Alphabet’s corporate culture, which historically has been open. Last month, Pichai announced that Google would reduce the size of the TGIF staff meeting, a long-standing tradition of the company. He said the meetings would be held monthly rather than weekly or bi-weekly because they wanted to prevent the content discussed at this internal meeting from being leaked.