Google employees complain about CEO Sundar Pichai’s pay raise as cost cuts hit rest of the company

Google CEO Sundar Pichai obtained a hefty pay increase final yr, making him one of many highest-paid CEOs in America. Last week, his firm introduced the authorization of a $70 billion inventory buyback.

Meanwhile, Google dad or mum Alphabet has been aggressively slicing prices, together with the elimination of 12,000 jobs, in response to slowing income development.

That confluence of occasions has raised the ire of Google’s workforce. In the weeks since Pichai’s annual compensation was made public, inside Google platforms have crammed with conversations and memes slamming the CEO for taking a pay bump whereas slashing prices elsewhere. Some staff additionally criticized the share repurchase, which equaled its 2022 buyback.

SEC filings confirmed Pichai was paid a complete of $226 million final yr, principally by means of a $218 million inventory award, which he receives each three years. The final time he obtained the award, in 2019, it was for $276.6 million and complete compensation was $280.6 million.

His 2022 package deal included almost $6 million for private safety and a $2 million base wage. In 2021, Pichai obtained a complete of $6.3 million, consisting of a $2 million wage and $4.3 million in different compensation.

Memes started circulating evaluating Pichai to Apple CEO Tim Cook, who in January obtained over a 40% lower from his 2022 goal complete compensation. Around the identical time, Zoom CEO Eric Yuan stated he would scale back his wage by 98% and decline his bonus after the corporate lower 1,300 jobs. Twilio CEO Jeff Lawson stated he’d even be taking a pay lower amid a 17% workforce discount.

More than a dozen memes from staff have stuffed Google’s inside dialogue boards, many with a number of hundred likes, based on posts considered by CNBC. One meme with greater than 1,200 likes referred to feedback from finance chief Ruth Porat, who wrote final month in a uncommon companywide e mail that the corporate is making “multi-year” cuts to worker companies. CNBC discovered cuts ranged from worker laptops and bills to health courses and cafe gadgets. 

“Ruth’s cost savings applied to everyone… except our hardworking VPS and CEO,” the meme stated.

Google did not present an on-the-record remark for this story.

It’s not the primary time Pichai has been beneath fireplace for his current determination making. In January, PIchai stated he took “full responsibility” for situations that led to the companywide layoffs.

At an all-hands assembly, staff requested Pichai why executives are getting pay cuts if he is taking duty. Pichai responded by saying that senior vice presidents are taking “significant reductions to their bonuses” and that he was forgoing his bonus.

Another in style meme confirmed a picture of Shrek character Lord Farquaad with the textual content “Sundar accepting $226 million while laying off 12k Googlers, cutting perks, and destroying morale and culture.” A quote from the character learn, “some of you may die, but that is a sacrifice I am willing to make.”

In the computer-animated fantasy from 2001, Lord Farquaad is the ruler of Duloc who exiles many fairytale creatures to the swamp.

The matter of Pichai and cash has been a controversial one courting again to late final yr, when the CEO stated at a companywide assembly that “we shouldn’t always equate fun with money.” At the time, he was responding to sure perks the corporate was eliminating, however he dodged worker questions on slicing government compensation.

Some of the frustration is being directed at Google’s plan to repurchase $70 billion in inventory, an indication the corporate has greater than sufficient money to cowl its operations and investments. A current meme that was favored greater than 700 instances learn, “$70 billion in buybacks shows we respect external shareholders more than Googlers.”

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