Sundar Pichai's Pay Cut: Google CEO to Slash his Salary This Year

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New Delhi: In light of the recent layoffs and challenging macroeconomic environment, it looks that CEO Sundar Pichai will receive a significant pay reduction. Pichai revealed that all positions beyond the "senior vice president" level will see a large decrease in their annual bonus during a recent town hall meeting with Google employees.

"The annual bonus for all positions above the senior vice president level will be reduced "quite significantly." Compensation for senior positions is based on business performance, "According to reports, Pichai stated in the town hall. While he didn’t specifically say about taking a salary cut, by his statements it is evident that he would also take a wage decrease. ()

Pichai omitted to state how much of a wage decrease will be implemented or for how long. ()

Now, just a few weeks before Google's announcement of layoffs, Sundar Pichai received a significant pay raise. The board of Alphabet, the parent company of Google, acknowledged Pichai's "excellent performance" at the time and stated that a large portion of the award's vesting would depend on Alphabet's overall shareholder return in comparison to other S&P 100 firms.

Alphabet also mentioned that the performance stock units (PSUs) were changed from 43 percent in 2019 to 60 percent in order to raise the payout's performance criterion. The Alphabet CEO also received two tranches of restricted stock units with a target value of $63 million each and an additional $84 million in cash.

Wondering to know how much Pichai makes per year? Google revealed Pichai's annual pay to be $2 million in a file beginning in 2020. According to the IIFL Hurun India Rich List 2022, the net worth of the Google CEO decreased by 20 percent to Rs 5,300 crore.