New York: Google Inc has cancelled certain stock options and stock units granted to its Senior Vice President and Chief Business Officer Nikesh Arora and will instead pay him USD 8 million in cash.
Arora had received certain Google stock options and stock units in April this year which were scheduled to vest on April 25, 2015.
When employees are given stock options or restricted stock, they often do not gain control over the stock or options for a period of time, known as the vesting period.
The leadership development and compensation committee of Google Inc has approved a compensation arrangement for Nikesh Arora, as per which certain awards of stock options and Google stock units previously granted to him in April 2012 were cancelled with effect from April 27, 2012.
In exchange for the cancelled stock options and stock units, Arora will receive a cash payment of USD 4.7 million along with a discretionary cash bonus payment of USD 3.3 million on or about May 11, Google said in a regulatory filing to the US Securities and Exchange Commission.
If Arora's employment with Google terminates for any reason after the payment date and prior to April 25, 2015, then he will be required to repay to Google, "the full value of the cash awards either before or after applicable tax withholdings, depending on when the termination occurs", the filing said.
First Published: Tuesday, May 1, 2012, 14:50