Pichai Gets Raise To Run Alphabet -- WSJ
December 23 2019 - 3:02AM
Dow Jones News
By Yoree Koh
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 23, 2019).
Google Chief Executive Sundar Pichai is getting an early holiday
present: the promise of one of the biggest corporate pay increases
in recent history for taking over parent Alphabet Inc., according
to a regulatory filing.
Mr. Pichai, who took over as Alphabet CEO this month after
co-founders Larry Page and Sergey Brin stepped down from active
management of the internet giant's parent, will get a base pay of
$2 million and is also being granted $240 million in stock awards
if he meets performance targets, the company said in a Securities
and Exchange Commission filing on Friday.
The compensation package is the second largest equity grant for
a new CEO in the Russell 3000 in the past decade, according to
compensation-data firm Equilar Inc. Only Apple Inc. Chief Executive
Tim Cook has been rewarded more handsomely, when he received equity
totaling $376 million in 2011, according to Equilar.
Mr. Pichai, 47 years old, takes over Alphabet at a time when the
company is grappling with many regulatory and political threats
that have affected the search giant and the wider tech industry.
The company is also trying to catch rivals Amazon.com Inc. and
Microsoft Corp. in the hot area of providing cloud-computing
services.
Alphabet has become one of the world's most valuable public
companies. Its more than $933 billion market cap puts it ahead of
online retail giant Amazon.com Inc., though it trails Apple and the
No. 2 Microsoft Corp.
Mr. Pichai is no stranger to big pay days. In the three-year
period through 2018, he realized $878.3 million in total
compensation, according to Equilar. He earned $1.8 million last
year running the Alphabet unit that accounts for most of the
company's sales and profit.
Still, this is a standout package, even among tech companies.
Cybersecurity firm Palo Alto Networks granted Nikesh Arora $124.7
million when he became CEO in 2018, for example, and Satya Nadella,
when he took over software giant Microsoft in 2014, was awarded
$59.2 million.
This is the first time Alphabet has awarded performance-based
stock grants to Mr. Pichai, Equilar said. The company didn't spell
out what goals Mr. Pichai must meet to get the full payout.
Even among sitting chief executives, Mr. Pichai's pay package
ranks among the largest. It is the fourth largest grant to a CEO at
any point in their tenure for executives running a Russell 3000
company during the past decade, said Equilar. The largest of those
compensation packages -- valued at $2.2 billion -- went to Tesla
Inc. CEO Elon Musk, Equilar said.
Write to Yoree Koh at yoree.koh@wsj.com
Corrections & Amplifications Alphabet has a market cap of
more than $933 billion. An earlier version of this article
incorrectly gave the figure as $933 million.
(END) Dow Jones Newswires
December 23, 2019 02:47 ET (07:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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